What Really Kickstarted China’s Green Energy Revolution?

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I wrote this in 2004 for WIRED when China first announced it was moving away from coal as its primary energy source to green energy. Fascinating to look back and see that China had just 400 Mw of wind energy then. Today it’s world leader with 145 Gw  or 145,000 Mw  (a Gigawatt is 1,000 Megawatts). Interesting to see climate concerns were not the main reason for this build out. Enjoy.

STEPHEN LEAHY SCIENCE 10.04.04 12:00 PM

CHANGE IN THE CHINESE WIND

THE WORLD’S LARGEST wind power project will begin construction this month near Beijing, bringing green energy and cleaner air to the 2008 Summer Olympics and city residents coping with some of the worst air pollution in the world.
The new wind power plant, located 60 miles outside Beijing in Guangting, will generate 400 megawatts when at full capacity, nearly doubling the electrical energy China currently obtains from wind. But that’s just the beginning. Last summer at a climate change conference in Bonn, Germany, China surprised many by announcing it will generate 12 percent of its energy from renewable sources such as wind by 2020.

windmill winter ponies

Pollution is part of the driving force behind China’s newfound passion for green energy, said Yu Jie of Greenpeace China‘s office in Beijing. “Acid rain blankets 70 percent of the country,” Jie said, cutting crop yields, damaging trees and making rivers and lakes too acidic to support fish.

The country’s galloping economic growth over the past 20 years has meant enormous increases in electrical power demands, 75 percent of which come from coal. China is the world’s largest coal-consuming country and home to 16 of the world’s 20 most polluted cities on the planet, according to the World Bank. At least 400,000 people in China die each year from air-pollution-related illnesses, the World Bank reports.

Pollution is not China’s only energy problem. It is also plagued by frequent and widespread power failures because its generating capacity cannot keep pace with industrial and consumer demands. The country leads the world in purchases of TV sets and other appliances.

While China has low-quality coal in abundance, its transportation infrastructure cannot ship enough coal from the mines in the west to the cities in the east, said Jie. Electrical energy self-sufficiency is a crucial goal for the Chinese leadership, especially as oil imports soar to provide gasoline for the 14,000 new motor vehicles being added to its streets every day.

linfen coalminer

These factors have pushed China to invite Western energy experts, including environmental groups like Greenpeace and the National Resources Defense Council, to help China become more energy-efficient and figure out how to produce 20,000 megawatts from wind by 2020.

A megawatt is a million watts, sufficient power to light 10,000 100-watt bulbs, or enough daily electricity for 600 to 1,000 households, depending on energy use. Germany currently leads the world, generating 12,000 megawatts from wind, with the United States well behind at 5,000 megawatts.

China is looking to Germany and Denmark to supply the technology and the policy models upon which to base a new renewable-energy law, said Jie. “This is the first time China has asked outsiders to comment on a proposed law.”

“China’s wind power potential is huge — 500,000, perhaps 600,000 megawatts — but it needs the proper legal framework,” said Corin Millais, executive director of the Brussels-based European Wind Energy Association. The association has contributed input on the Chinese renewable-energy law.

China has a complex mix of state, local and private energy generators, with multiple levels of subsidies and often conflicting regulations. “Changes in state and federal laws are needed, along with clear rules about who sets the price and who owns the wind power farms; otherwise the wind-energy boom won’t happen,” said Millais.

The Chinese want to pursue private-public partnerships with European companies, but because up to 80 percent of the total cost of a wind farm is building it, companies need a reliable price structure for the power they sell, he said.

The new law is expected to be in place by next summer, and if it has the right ingredients, the Chinese landscape will soon blossom with fields of 2- and 3-megawatt wind turbines.

Another reason China is looking to wind is because it is now as cheap as coal, said Kyle Datta, managing director at Colorado’s Rocky Mountain Institute, a leading independent energy research center. And if the health costs associated with coal burning are considered, wind is actually a lot cheaper, said Datta, who researched the Chinese energy market while co-authoring a book, Winning the Oil Endgame: American Innovation for Profits, Jobs and Security.

“People in Chinese cities would also prefer it (wind energy) to all those diesel generators they needed last summer just to keep the lights on some of the time,” Datta said. Solving China’s pollution problems while meeting its energy needs will be difficult and will require a mix of power-generation technologies, including biomass, solar and hydro, he added.

Although China has little interest in nuclear power because of its high cost and security concerns, a few more nuclear plants will also be built, Datta said.

Public Pays for Fukushima Clean Up While Nuclear Industry Profits

Japan Fukushima Dai-ichi nuclear power plant March 31 2011

By Stephen Leahy

UXBRIDGE, Canada, Mar 12 2013 (IPS)

Two years after Japan’s Fukushima Daiichi nuclear disaster, the country faces 100 to 250 billion dollars in cleanup and compensation costs, tens of thousands of displaced people and widespread impacts of radiation.

The nuclear industry and its suppliers made billions from building and operating Fukushima’s six reactors, but it is the Japanese government and its citizens who are stuck with all the costly “fallout” of the disaster.

“People’s lives were destroyed and we will be paying trillions of yen in tax money because of the Fukushima disaster,” said Hisayo Takada, an energy campaigner with Greenpeace Japan.

“The nuclear industry, other than Tepco (Tokyo Electric Power Co), has paid nothing as they are specially protected by the law,” Takada told IPS.

On Mar. 11, 2011, Japan experienced a 9.0 magnitude earthquake and resulting tsunami that badly damaged Tepco’s Fukushima Daiichi nuclear plant. Three of six reactors suffered a meltdown, and reactor unit four was damaged. The Fukushima accident has been rated at the highest level (7) of the International Atomic Energy Agency scale, the same as the Chernobyl accident.

A year after the disaster, Tepco was taken over by the Japanese government because it couldn’t afford the costs to get the damaged reactors under control. By June of 2012, Tepco had received nearly 50 billion dollars from the government.

The six reactors were designed by the U.S. company General Electric (GE). GE supplied the actual reactors for units one, two and six, while two Japanese companies Toshiba provided units three and five, and Hitachi unit four. These companies as well as other suppliers are exempted from liability or costs under Japanese law.

Full story here

Nuclear Energy and the ‘Mother of all Subsidies’

[The two year anniversary of the Fukushima nuclear disaster  is March 11. Little has changed from this 2011 article (except cleanup costs may be higher at $250 billion). Generations of Japanese taxpayers will have to cover those costs. Other countries also have liability caps which means the public provides ‘free insurance’ to the industry. As this article shows it’d be cheaper to give interest-free loans to solar or wind industry. — Stephen.]

“…it is basically insanity to shoulder the public with risk to get relatively small amount of electricity…”

By Stephen Leahy

UXBRIDGE, Canada, May 6, 2011 (IPS)

The nuclear energy industry only exists thanks to what insurance experts call the “mother of all subsidies”, and the public is largely unaware that every nuclear power plant in the world has a strict cap on how much the industry might have to pay out in case of an accident.

In Canada, this liability cap is an astonishingly low 75 million dollars. In India, it is 110 million dollars and in Britain 220 million dollars. If there is an accident, governments – i.e. the public – are on the hook for all costs exceeding those caps.

Japan has a higher liability cap of 1.2 billion dollars, but that is not nearly enough for the estimated 25 to 150 billion dollars in decommissioning and liability costs for what is still an ongoing disaster at its Fukushima Daiichi nuclear plant. Seven weeks after the tsunami caused the disaster, radiation levels continued to spike higher.

No one knows when the reactors will finally be in cold shutdown, or when the costs of the Fukushima disaster will stop piling up. One report suggests decommissioning will take 30 years.

This independent environmental journalism depends on public support. Click here learn more.

Japan’s credit rating was downgraded because of the accident, noted Mycle Schneider, a Paris-based energy and nuclear policy analyst who has worked in Japan. “The Japanese know it’s just a matter of time before another large earthquake occurs,” Schneider told IPS.

“Japan will never build another nuclear plant.
Continue reading

Costs for Nuclear Energy Skyrocket While Cost of Renewables Plummet

Darlington Nuclear Plant on Lake Ontario

[This is a repost about the financial costs and risks of nuclear technology (written before the Fukushima I Nuclear Power Plant disaster).   If a country is going to spend $10 billion to generate energy and reduce carbon emissions what technology truly offers the best return on a full cost-accounting basis? The latter calculation is not simple or uncontroversial. Two years ago Canada balked at the costs of new nuclear plants now it plans to build some without knowing the price tag.  — Stephen ]

By Stephen Leahy*

BERLIN, Jul 31, 2009 (IPS)

With costs of nuclear energy skyrocketing while the costs of renewables are falling quickly why is nuclear energy back on the table?

One reason is a powerful U.S. lobby where 14 energy companies spent 48 million dollars in 2007 alone to convince American politicians to give the industry huge loan guarantees because they cannot get financing anywhere else, says Ellen Vancko, a nuclear energy analyst at the Union of Concerned Scientists, a U.S.-based non governmental organisation (NGO).

This lavish lobbying effort by the energy and nuclear power sector has been ongoing since the mid-1990s, according to the Center for Responsive Politics, a U.S. NGO and now totals at least 953 million dollars.

Even more has been spent to convince the public that nuclear is one of the keys to energy security so that there is significant public support for new reactors, a Gallup Environment Poll reported this year.

“There are lots of senators and members of congress talking about nuclear as a clean, renewable energy resource,” Vancko says.

The other reason is the French.

France gets about 77 percent of its power from 58 reactors and is often cited as the model for other countries. “France is a special case. The entire industry is 85 percent owned by the government,” says Mycle Schneider, a Paris-based energy and nuclear policy analyst.

The industry gets direct and indirect subsidies, government loans and loan guarantees “on practically anything they want”, Schneider told IPS.

And despite a well-polished reputation for efficiency and low-cost, the French nuclear industry has been plagued by cost-overruns, equipment failures, and relatively low levels of reliability. Even though French reactors are all of similar design, the cost to build a plant in 1998 was 3.5 times higher than the first plants built in 1974, says Steve Thomas, professor of energy policy at the University of Greenwich in the U.K.

Unlike wind or solar energy or virtually any other technology, the costs of nuclear go up over time rather than down even in pro-nuclear France, he said. “I think that is rather telling about the technology,” Thomas told IPS.

The current Finnish nuclear experience echoes the industry’s long history.

Backed byFrench government loan guarantees, Areva, the French government-owned nuclear energy company began construction in 2005 on what is supposed to be the world’s largest and safest nuclear plant at Olkiluoto, Finland.

Plagued by thousands of construction and design problems it is currently 2 to 3 billion dollars over budget and three to four years behind schedule.

“It’s a total disaster for Areva,” Schneider says. Areva will have to sell another 12 reactors to cover the cost overruns thus far or else French taxpayers will, he said.

“The hype around a nuclear power revival or renaissance was based on nothing and is effectively dead.”

Last month Canada backed out of ordering two 1,200-megawatt reactors because cost estimates of 10,000 dollars/kW were three times higher than expected. [update Feb 2011 – Ontario now holding hearings to spend $33 billion to build two new reactors and upgrade others and bans offshore wind!]

However there is real danger that the nuclear industry will continue to promote itself as a ‘silver-bullet’ solution to climate change and give politicians the kind of mega-projects that gets them publicity, warns Schneider.

Equally important is that corporate shareholders of large utility companies can do very well financially on such projects when governments guarantee to cover any losses.

“The worst thing about new nuclear is that it steals billions of public dollars from other more effective things like energy efficiency,” he says.

(Second of two part series)

-30-

Part one:

Lobbyists Push for Nuclear Energy and put Taxpayers on the hook for 360 billion to 1.6 trillion dollars (again)

Who Controls the Nuclear Control Agencies?

April 1986 disaster at the Chernobyla nuclear power plant in Ukraine

“There are few independent nuclear experts in the world. Everyone either works in the industry or used to and are now regulators.”

Canadian Government fired chief regulator for trying to improve safety standards — Greenpeace

By Stephen Leahy*

UXBRIDGE, Canada, Mar 23, 2011 (Tierramérica)

As Japan struggles to confront a nuclear disaster that could be the worst in history, it seems clear that any discussion about the safety of nuclear energy should address the independence of regulatory agencies.

On Apr. 26, 1986 a series of explosions and fires at the Chernobyl nuclear power plant in Ukraine released radioactive fallout that spread over eastern and western Europe, particularly affecting Ukraine itself, Byelorussia (now Belarus) and Russia, all Soviet republics at the time.

Twenty-five years later, Chernobyl’s reactor number 4 continues to emit high levels of radioactivity even though it is buried under a thick but decaying layer of concrete.

Europe and the United States are trying to raise more than two billion dollars to build a permanent sarcophagus to contain the radiation.

The Chernobyl disaster is usually attributed to obsolete technology and the secrecy characteristic of the Soviet regime.

The accident at the Tokyo Electric Power Co. (TEPCO) Fukushima I Nuclear Power Plant was triggered by the damage resulting from the 9.0-magnitude earthquake and subsequent tsunami on Mar. 11.

But “TEPCO doesn’t have the best record for safety or disclosure of information,” said Mycle Schneider, a Paris-based energy and nuclear policy analyst who also works in Japan.
Continue reading

Limited Liability – Nuclear Energy’s ‘Mother of all Subsidies’

By Stephen Leahy

UXBRIDGE, Canada, May 6, 2011 (IPS)

The nuclear energy industry only exists thanks to what insurance experts call the “mother of all subsidies”, and the public is largely unaware that every nuclear power plant in the world has a strict cap on how much the industry might have to pay out in case of an accident.

In Canada, this liability cap is an astonishingly low 75 million dollars. In India, it is 110 million dollars and in Britain 220 million dollars. If there is an accident, governments – i.e. the public – are on the hook for all costs exceeding those caps.

Japan has a higher liability cap of 1.2 billion dollars, but that is not nearly enough for the estimated 25 to 150 billion dollars in decommissioning and liability costs for what is still an ongoing disaster at its Fukushima Daiichi nuclear plant. Seven weeks after the tsunami caused the disaster, radiation levels continued to spike higher.

No one knows when the reactors will finally be in cold shutdown, or when the costs of theFukushima disaster will stop piling up. One report suggests decommissioning will take 30 years.

This independent environmental journalism depends on public support. Click here learn more.

Japan’s credit rating was downgraded because of the accident, noted Mycle Schneider, a Paris-based energy and nuclear policy analyst who has worked in Japan. “The Japanese know it’s just a matter of time before another large earthquake occurs,” Schneider told IPS.

“Japan will never build another nuclear plant.
Continue reading

Nuclear Power Costs Skyrocket, Cost of Renewables Plummet

[This is a repost about the financial costs and risks of nuclear technology. If a country is going to spend $10 billion to generate energy and reduce carbon emissions what technology truly offers the best return on a full cost-accounting basis? The latter calculation is not simple or uncontroversial – here is an attempt to get at it.– Stephen ]

By Stephen Leahy*

Costs of nuclear skyrocket while costs of renewables falling quickly say energy experts

BERLIN, Jul 31, 2009 (IPS)

Why is nuclear energy back on the table?

One reason is a powerful U.S. lobby where 14 energy companies spent 48 million dollars in 2007 alone to convince American politicians to give the industry huge loan guarantees because they cannot get financing anywhere else, says Ellen Vancko, a nuclear energy analyst at the Union of Concerned Scientists, a U.S.-based non governmental organisation (NGO).

This lavish lobbying effort by the energy and nuclear power sector has been ongoing since the mid-1990s, according to the Center for Responsive Politics, a U.S. NGO and now totals at least 953 million dollars.

Even more has been spent to convince the public that nuclear is one of the keys to energy security so that there is significant public support for new reactors, a Gallup Environment Poll reported this year.

“There are lots of senators and members of congress talking about nuclear as a clean, renewable energy resource,” Vancko says.

The other reason is the French. Continue reading