Sunday, 26 December 2021
Off Grid Electricity keeps Lights On
Saturday, 25 December 2021
A Solution to the Collatz Conjecture
20036 |
10018 |
5009 |
15028 |
7514 |
3757 |
2036 |
1018 |
509 |
1528 |
764 |
1036 |
518 |
259 |
778 |
389 |
136 |
68 |
34 |
17 |
52 |
2308 |
1154 |
577 |
1732 |
866 |
433 |
1300 |
650 |
325 |
976 |
488 |
244 |
122 |
61 |
184 |
92 |
46 |
23 |
70 |
35 |
106 |
53 |
160 |
80 |
40 |
20 |
10 |
5 |
16 |
8 |
4 |
2 |
1 |
87 |
262 |
131 |
394 |
197 |
592 |
296 |
148 |
74 |
37 |
112 |
56 |
28 |
14 |
7 |
22 |
11 |
34 |
17 |
52 |
26 |
13 |
40 |
20 |
10 |
5 |
16 |
8 |
4 |
2 |
1 |
Wednesday, 15 December 2021
Eirgrid to Underground New Grid Infrastructure
Over the past decade, as many readers will know, there has been a huge furor in many communities north and south of the border about the North South Interconnector. With the main bone of contention being the decision by Eirgrid not to underground it. However, it looks like Eirgrid have finally learned a lesson from that and are now listening to communities. But surely this new approach by Eirgrid raises questions about their existing plans for the North South Interconnector ?
On the grid side, we have made three decisions in the past 12 months that we arguably might not have made five years ago. We declared that two major pieces of grid infrastructure are going underground. The first is in the Dublin-Kildare region where we have made the call and said a critical piece of west Dublin infrastructure is going to be underground.
We have said the line to Mayo will be underground and the converter station for the Celtic Interconnector, one of Ireland's most critical projects which will link us to France, will be located not beside the substation in Knockraha, but in an industrial site in Ballyadam. This is because that is what communities asked us to do - Mark Foley, CEO Eirgrid
Link :
Friday, 10 December 2021
The Green Europe and Unsustainable Finances Paradox
The graph below shows the total balance sheet assets of three of the world's major banks - the Fed in America, European Central Bank and Bank of Japan. It is noteworthy for many reasons. Firstly, the ECB has overtaken the other two with total assets of $9.6 trillion. Most of this is due to quantitative easing (QE) or money printing.
The ECB has been engaging in large scale QE since 2015, long before the covid pandemic. Which is odd since most of Europe's economies were strong then. Certainly, here in Ireland, house prices were rising again, as were rents by 2015 and 2016. At the end of 2016, the government brought in rent controls to cap rent increases. Also in early 2016, the European Commission expected Ireland to be the fastest growing economy in Europe. Yet, Ireland was been flooded with this cheap ECB money which the government was only too happy to take and spend in an economy beginning to heat up (on a side note - it didnt fix the health service did it ?).
Thursday, 2 December 2021
More Gas Power Stations to be Built
- the development of new conventional generation (including gas-fired and gasoil/distillate-fired generation) is a national priority and should be permitted and supported in order to ensure security of electricity supply and support the growth of renewable electricity generation
- it is appropriate that existing conventional electricity generation capacity should be retained until the new conventional electricity generation capacity is developed in order to ensure security of electricity supply
Saturday, 27 November 2021
Can the VAT rate on Electricity be Reduced?
"The reduced rates shall be fixed as a percentage of the taxable amount, which may not be less than 5 %".
" Article 118Member States which, at 1 January 1991, were applying a reduced rate to the supply of goods or services other than those specified in Annex III may apply the reduced rate, or one of the two reduced rates, provided for in Article 98 to the supply of those goods or services, provided that the rate is not lower than 12 %".
"Article 102After consultation of the VAT Committee, each Member State may apply a reduced rate to the supply of natural gas, electricity or district heating"
Thursday, 25 November 2021
EU Ban Scottish Potato Seeds
Ireland has been importing potato seeds from Scotland for over 150 years but amazingly the EU has banned them following Brexit because they do not comply with "phytosanitary rules". I thought it truly remarkable that the most virus resistant seed available to Ireland since the Great Famine does not comply with EU rules. And we pay the EU for the privilege.
Wednesday, 24 November 2021
Peak Winter Demand Arrives
Things get a little bit shaky !
Last night at 5.30pm, the electricity grid hit peak demand for All Ireland at 6,638MW - not far off Record peak demand of 6,878MW reached on December 21st last year.
But total system generation was only 6,106MW leaving a shortfall of 532MW.
Wind energy was low most of the day, only 380MW or about 7% was available for the whole island at 5.30pm.
The two UK interconnectors saved the day with combined imports of 450MW. There was still a shortfall of about 80MW, made up presumably from demand side units. These would comprise mostly of diesel generators and combined heat and power units. These units are "non-centrally monitored" according to Eirgrid and are not included in these graphs.
Tuesday, 23 November 2021
Whitegate and Dublin Bay Power Stations Trip
850MW of generation lost last night
Monday, 22 November 2021
Whitegate Gas Power Station back in Action
Whitegate power station has in the past hour returned to operation after nearly 12 months out of action due to a turbine fault. It is expected to return to full commercial operation tomorrow. A small loose bit of metal caused significant damage last December to what is a very sensitive piece of equipment. It was due back at the beginning of November. The return of the 444MW power station comes just at a good time as the weather has turned cold and demand is rising. Also imports from the UK and wind energy appear to be very low in the past few days.
Back in July, the Energy Regulator warned that power stations have become less reliable due to extreme operational requirements that they were not designed for during periods of intermittent wind.
Tuesday, 16 November 2021
Is the Covid Vaccine Working ? (Part 2)
The covid vaccines do not seem to be having the same impact as previous vaccine rollouts such as the MMR vaccine :
Saturday, 6 November 2021
Saving the Amazon not on the COP26 Menu
I had a quick look at the objectives of COP26. The main ones are - lower emissions, stop coal, more EVs, more renewables, protect only those ecosystems affected by climate change and printing more money.
The biggest environmental problem in the world today is the destruction of the Amazon rainforest. The leading cause is cattle ranching. Banning the importation of Brazilian beef until the destruction stops would help save the rainforests.
But that is not on the menu at COP26. The modern environmental movement is not fit for purpose.
Thursday, 21 October 2021
Precarious Winter Outlook
Monday, 18 October 2021
Daylight Fuel Robbery
Tuesday, 12 October 2021
Why Inflation will not be Temporary
The current conventional wisdom is that inflation in Ireland will only be temporary as the economy recovers from the covid lockdowns. But this can only be the case if there was deflation during the lockdowns which the re-opening induced inflation would now be negating. The only deflation that occurred during the lockdowns that I can remember was petrol prices. Core consumer items such as food, electricity bills and rent did not fall or at least not in any noticeable way. A period of deflation is not equivalent with an economy being closed down. A rental freeze is not deflation. This is the mistake the economic experts are making. They also have not taken into account the effects of the large government spending.
When a hotel or other business is shutdown, its prices do not reduce, the service simply ceases to exist. In fact, inflation will likely occur. Say two hotels close down in a region leaving only one hotel open. This will lead to a period of inflation as the remaining hotel raises its prices to take advantage of the increased demand and reduced supply. The difference between this scenario and the lockdown was that during the lockdown all three hotels were shutdown meaning there was no deflationary pressure. Then when the hotels opened, they could charge high prices because people had a lot of savings. This was an unintended consequence of the high level of unemployment support. And the same happened with rent, an opportunity was missed during lockdown to bring about rental deflation through a smaller Pandemic Unemployment Benefit. Instead, the government went along with the calls from the most populist spending cheer-leaders.
Another point that is missed is that many businesses may never re-open again. This will bring further inflationary pressure as supply reduces.
As you can see from the graph above, the sharpest fall in prices was in November 2020 when year on year deflation reached -1.5%. This was the sharpest fall in a decade. In less than 12 months however , the inflation has skyrocketed to +3.7%.
While there are other factors impacting inflation right now, such as our high dependence on global supply chains, the high levels of pandemic payments paid out last year are part of the reason why Ireland has inflation above the EU average and even above UK's inflation rate of 3.2%. People saved up, then spent most of it in-between the lockdowns leaving little pressure on businesses to drop their prices. Little haggling took place with landlords who should have been under severe pressure to drop their rents during a period of very little house moving by job hunters both within Ireland and those coming from abroad.
But as every economist should know but seems to have forgotten, all this money had to be printed, which was happening at a high rate prior to the pandemic anyway. Too much money printing or quantitative easing (or whatever you want to call it) , and the inflation snail eventually catches up with you. Too much money ends up chasing too few goods. And then the snail begins to look like a rabbit.
Monday, 4 October 2021
Gas Prices Rise and Fall but Energy Bills never get Cheaper
People's memories are short in Ireland so now is a good time to remind them that gas prices rise and fall but energy bills never get cheaper. This is a quote from an Irish Independent article from 2015 :
"Irish consumers pay the fourth-highest energy bills in Europe, according to EU statistics. Little of the large recent falls in wholesale gas and oil prices have been passed on to consumers".
The energy industry and politicians are now blaming high gas prices for the massive rise in electricity prices. In a properly functioning market, falls in wholesale prices would lead to lower bills. It has to work both ways. This clearly did not happen.
Thursday, 30 September 2021
How Close is Ireland to Blackouts ?
Chart 1 - The green line includes all potentially available capacity whether currently in use or not. Some adjustments have been made to the red line to take account of the temporary loss of two gas and one oil generators .
The above graph shows how Ireland's electricity supply position has evolved since the height of the building boom in 2006. The green line shows the total generation capacity that consumers must pay for including wind energy. As you can see the gap between the green line and peak demand in blue has increased exponentially in tandem with the building of new wind farms in yellow and new power stations in red. This gap is a large part of the reason why electricity bills have soared in recent years as the capital element of all of this capacity must be financed through bills regardless of how much energy they produce. So with all of this excess capacity, how is it that we are facing the prospect of blackouts?
The red line is dispatchable plant, that is, plant that can be switched on at a moment's notice as required. The main ones in Ireland are gas, coal and oil power stations. The interconnector to England (EWIC) is also included in this however it's debatable how dispatchable this is in light of recent events (more on this later). Peat is also dispatchable but two of those power stations were closed down in 2020 leaving only one remaining peat station in Edenderry which also runs on biomass. It is due to be closed down in 2023. It has now finally being accepted by almost everyone (apart from the Green Party Energy Minister ?) that wind is not dispatchable and during long periods of low wind as we have had this year it is really the red line that we are relying on to keep the lights on.
The red line takes a noticeable dip after 2020. This is to take account of the loss of three power stations during 2021 - Huntstown 400MW, Whitegate 444MW and Tarbert 243MW. This has returned us to 2007 levels of dispatchable plant. This shouldn't present a serious problem, we managed okay back then. However, there are two main differences between now and back in the Tiger days :
1) Peak demand has increased by about 10%. The peak of 5,357MW was reached in December 2020. It is likely that this will increase further this winter which means the gap between the red and the blue line in Chart 1 will narrow even further.
2) The rate of forced outages has increased dramatically in recent years. According to Eirgrid, the forced outage rate went from a low of about 3% in 2016 to a high of about 16% in 2021. The forced outage rate is the rate at which power stations are breaking down. Power stations are becoming less reliable and not just old ones. One reason for this is that they are switching on and off too much to balance the wind (more here) .
The situation then is precarious enough but what happens if the UK does not have spare energy to give to us over the interconnector ? This has become a greater risk as energy shortages have recently become a major political issue in the UK. Chart 2 shows what happens when the EWIC is no longer available :
There is now a very small gap between the red and blue lines. 353MW to be exact. Which is about the size of a single power station. So another power station outage would leave us on the precipice and if the winter is a cold one demand will surely rise pushing us over the edge into blackout territory.
To sum up here, it would take six events occurring at the same time to leave us in a very dangerous position - three of those are the three currently unavailable power stations not being repaired in time for winter, the fourth is the interconnector becoming useless, the fifth is either another power station breaking down or demand rising higher than last year. The trend for the fourth and fifth events is going the wrong way in all cases. The likelihood however of all 3 power stations not being repaired in time for winter is fairly slim although I have a feeling Whitegate may not be repaired by mid November as scheduled.
The sixth event is perhaps the biggest variable of all, the yellow line in the charts - wind energy. If there is plenty of it then in theory the majority of these events occurring simultaneously would not pose such a major problem. But if we have another lull as we have had this summer then that is a different story.
I say, in theory, because it is slightly more complicated than that. Certain power stations are required to be operating at all times to maintain the stability of the grid. Currently that includes Moneypoint coal power station. Moneypoint happens to be the oldest power station on the grid so there is a risk to the entire grid if it alone suffers an outage. No amount of wind energy can replace the inertia that Moneypoint provides to the system.
In any event, the demand of large energy users will most likely be cut before we get near the precarious position of all or most of these events occurring together.
Demand management they are calling it. Which is another form of blackout, just with a nicer name .
Saturday, 18 September 2021
Record Prices hit the Irish Electricity Market
On Thursday the 9th September, prices in the All Ireland Electricity Market hit record highs of €4,680 per MWh, well over 20 times the normal price :
Thursday, 16 September 2021
Energy Regulator - Existing Generating Fleet has become less Reliable
Coming into the past winter, winter 2020-21, we had our seasonal update with EirGrid. We have a winter outlook and a summer outlook. That involves EirGrid, ourselves and the Department of Environment, Climate and Communications. In this we identify short-term challenges. These included an uptick and increase in demand from a range of sectors, which would have included data centres and the economy recovering or starting to recover post Covid. Separately, we noticed a reduction in the reliability of the existing fleet. Some of those pieces of the fleet that are of medium to older age are being asked to turn up and turn down more frequently as they balance the wind. They are being asked to do things they were not designed for, so the reliability of some of the existing fleet has decreased a little.
Sunday, 12 September 2021
Lifespan of a Gas Turbine
According to Siemens a gas turbine is designed to run for 40 years with maintenance every 3 years as this video explains:
https://www.youtube.com/watch?v=bj3a1e901Uk
The gas turbine in Whitegate power station was severely damaged last December when a small piece of metal broke loose and damaged the blades. The turbine was installed in 2010. So it is unusual that the turbine would be so severely damaged after just 10 years.
Thursday, 2 September 2021
Zero Carbon Here We Come
There has been much news lately about the prospect of blackouts during the winter most notably by the Sunday Business Post. Huntstown and Whitegate gas power stations are both out of action, as is Tarbert diesel power station. There is also uncertainty around Moneypoint coal power station and the East West Interconnector although at the moment Moneypoint is running flat out. Coupled with the extra demand from data centres this means that some form of blackouts or "load shedding" (cutting off certain parts of the country for short periods to balance supply and demand) is quite likely this winter. However, the situation is changing rapidly and the latest is that Huntstown and Whitegate will be repaired by October / November. My own gut feeling is that it may be an over reliance on the UK Interconnector that finally puts us in the dark. Yet another coal powered station has been demolished over there, Ferrybridge in Yorkshire, which at a capacity of 2000mw was possibly the largest power station in Europe.
Anyone who has been following this blog will know that I have been predicting this situation for many years. Whitegate is only ten years old and is a modern combined cycle gas turbine (ccgt) station. It appears that the turbine has suffered serious damage from a tiny piece of metal that broke loose. It's difficult to attribute this to anything in particular but CCGT is the most efficient form of generation and there are concerns that operating them intermittently (to backup wind) will increase the wear and tear of the gas turbine. A bit like running your car in heavy traffic is less efficient than on a motorway. Huntstown has a problem with a transformer which could happen at any time.
The bigger issue here is that wind energy, no matter how much is installed, cannot replace a power station. So we are left in the dark when things go wrong with traditional generation despite spending billions on them. We have a bloated electricity sector, one of the most costly in Europe, yet one that is prone to regular amber alerts.
How did this happen? Quite simply, because of target based policies. Meeting targets is the only option on the menu. There is no room for good judgement and balanced decision making. It is rule by the target setting bureaucrat and the box ticker that has got us into this mess.
Targets for biofuel means dead orangutans.
Targets for agriculture means the destruction of the amazon.
Targets for heating means importing German peat briquettes.
Targets for electricity means blackouts.
Wednesday, 11 August 2021
Ireland's Temperature Records shows Winter and Spring Cooling
While there is much furore of late about global warming, the reality in Ireland is that during the first 5 months of the year there was actually much colder weather than average as can be seen in the temperature records from Met Eireann below. LTA here refers to the long term average for 1981 to 2010. It shows significant cooling in January and May, enough to cause a concern nationally but so far I haven't seen any. It shows the mistakes that can be made by solely relying on ipcc reports. In this case, the mistakes could be very costly for people's lives and impact on hospital admissions (a topical subject at the moment) .
If Ireland's climate is becoming cooler then that means we will need more reliable heating sources and more reliable energy generators than other countries. However, our leaders are moving in the opposite direction with bans on fossil fuels.
MACE H | J | F | M | A | M | Total | diff |
2021 | 5.7 | 6.6 | 7.7 | 9 | 9.9 | 38.9 | |
LTA | 6.8 | 6.7 | 7.9 | 9.3 | 11.6 | 42.3 | -3.4 |
VALENTIA | |||||||
2021 | 6.3 | 7.7 | 8.4 | 9.1 | 10 | 41.5 | |
LTA | 7.3 | 7.2 | 8.1 | 9.3 | 11.5 | 43.4 | -1.9 |
BALLYHAISE | |||||||
2021 | 3.3 | 5.7 | 7.3 | 6.6 | 9.5 | 32.4 | |
LTA | 4.9 | 4.9 | 6.5 | 8.2 | 11 | 35.5 | -3.1 |
OAK PARK | |||||||
2021 | 3.9 | 6.1 | 7.6 | 7.1 | 9.7 | 34.4 | |
LTA | 5.1 | 5.6 | 6.9 | 8.4 | 11 | 37 | -2.6 |
MALIN HEAD | |||||||
2021 | 5.1 | 6.1 | 7.5 | 7.3 | 9.4 | 35.4 | |
LTA | 5.9 | 5.8 | 6.8 | 8.2 | 10.3 | 37 | -1.6 |
MOORE PARK | |||||||
2021 | 4.4 | 6.3 | 7.5 | 7.4 | 9.8 | 35.4 | |
LTA | 5.7 | 5.8 | 6.9 | 8.6 | 11 | 38 | -2.6 |
MT DILLON | |||||||
2021 | 3.4 | 5.9 | 7.6 | 7.1 | 9.5 | 33.5 | |
LTA | 4.7 | 5 | 6.5 | 8.3 | 10.9 | 35.4 | -1.9 |