Archive for wind

Two Renewable Energy Penny Stocks

I asked my readers at Alternative Energy Stocks what companies they wanted to know more about, and the two most requested were a transmission and wind company (CPTC.OB), and a company looking to make oil for biodiesel from algae (PSUD.PK)

Click through the links to read the results of my research.

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Transmission Stocks.. not exciting enough?

My AltEnergyStocks column this week is about investment opportunities in transmission, but to judge by the comments, readers are much more interested in direct investment in wind.

This is not particularly surprising to me… electric transmission is both complex and boring. It’s also absolutely necessary for our transition to a sustainable energy economy. As a contrarian, the lack of interest in my readers makes me more bullish; I love sectors with great prospects that no one is interested in talking about (or buying) yet.

An interesting parallel is my article on the polysilicon industry, which I wrote last July. At the time, only my regular readers read it, but in the last few months, now that the companies involved have risen another 50-100%, it’s consistently one of my most popular, despite the fact that there’s a good chance that the silicon supply crunch may soon ease up.

I wonder how many people will be reading my transmission column eight months from now?

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Inverter Stocks: A Backdoor to Solar and Wind

My column on this week is about the companies that make the inverters which transform the DC or wild AC current produced by solar panels and wind turbines (respectively) into the type of AC power used by the grid. It begins:

    Whenever there is a gold rush, the people who make the real money are seldom the gold miners, but rather the suppliers to the miners that come home with the lion’s share of the profits. This is not because there is not an incredible amount of money to be made in mining gold, but because the nature of a gold rush is that too many optimistic miners are encouraged by the early profits of a few to rush to pursue too few opportunities.

    To many, the rush into solar stocks seems to be just that sort of gold rush. The boom in solar IPOs certainly reminds me of the type of feeding frenzy in which incautious investors are likely to get burned. And we are also seeing some other signs of rampant speculation, where investors are buying poorly managed (or even dishonest) companies with almost the same fervor of well managed ones. There’s little doubt that the future is bright for solar power, but picking solar companies that are going to survive and thrive in that bright future is becoming increasingly difficult in an increasingly crowded field.

    In a gold rush like this one it makes more sense to look at the suppliers.

Click here to read the rest of the article.

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Visual Comparison of Electricity Generation Technologies

I just put together a couple graphs for a talk I’m giving on Monday to give people a visual feel of the various technologies for generating electricity.  These come with a gigantic caveat: the numbers are far from precise.

With changing technologies, it’s impossible to represent any of this with a single number anyway.  I’m trying to show how the technologies compare to each other, and I used four parameters:

  • Cost ($/MWh),
  • Availability (better the closer the profile of the technology matches a normal demand curve (wind is bad, baseload is okay, dispatchable is best, solar),
  • Emissions (and I count waste storage when it comes to nuclear),
  • Bubble sizes represent the size and durability of the resource (I’ve tried to combine in one number how much power we can get from the resource, but also how long supplies of fuel will last.) 

In both charts, the “best” technologies are in the upper left (low cost, low emissions, and available when we need them.)

I know that I’m going to upset a lot of people because I was too harsh with their favorite technology, so feel free and comment on the numbers I’m using, but also please provide references for where you get your numbers.  Most of these are off the top of my head, so their accuracy is admittedly questionable.   Here are the numbers I used to make the graphs.

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Holistic Approaches to Energy Problems

H. L. Mencken said, “For every human problem, there is a neat, simple solution; and it is always wrong.”  When it comes to solving the problems of peak oil and global warming, I also think that the loudest barking is up the wrong tree.  We look for the quick fix, trying to find a substitute energy source that allows us to change the way we do things little as possible, when the real problem is actually what we’re doing, not how we’re doing it.   We need holistic solutions, not quick fixes.

Too abstract?  Here are some concrete examples:

 Problem: Peak Oil

Quick fixes: Ethanol and slight increases in vehicle efficiency standards.

Holistic solutions: Change our driving culture and infrastructure, by changing the way car use is priced from fixed charges to a per mile basis (“Pay as you drive”).   Removing subsidies to use cars when other forms of transport are available, and redesigning our cities to make them easier to get around on foot, bike, and public transport.  Like other holistic solution, all these steps increase safety and reduce congestion, reduce obesity and associated health problems, as well as reducing the use of gasoline.

Problem: Wind and Solar are intermittent resources, but coal produces too much CO2 and natural gas prices are rising rapidly.

Quick Fixes: Nuclear power and “Clean” Coal.

Holistic Solutions: Shift our demand for electricity to times when it is available, by using time of use pricing, energy storage and demand alignment, and distributed energy storage such as plug in hybrid vehicles.

Investing opportunities:On thing that’s striking about these examples is it’s much easier to find investment opportunities in the quick fixes than in the holitistic solutions.  To invest in ethanol, you can just buy ADM or one of the multitude of ethanol stocks that have been going public recently, but I have yet to come up with a satisfactory way to invest in better urban planning (except buy a house in a walkable community, which is something I’m planning on doing this summer.   Stapleton is the community.  I currently live there, but I’ve been renting and waiting for the end of the housing bubble.  I actually don’t think that housing is going to go up again any time soon, but I’m tired of waiting.) 

The investment landscape is a little better when it comes to energy management.  Itron and Siemens both have divisions that help utilities manage their grids better, and there are many battery and other energy storage companies to choose from.  Still, it’s a lot harder to pick through battery companies than to just buy a nuclear powered utility or uranium miner.

Holistic solutions, by their nature, have weak boundaries… the benefits tend to be diffuse, and spread over society as a whole, so it is difficult to charge fairly for them.  This, I think, is why there are so few companies pursuing them when they can pursue a quick fix that they can charge for up front.  

Companies have an obligation to their shareholders to make money.  It’s our job, as human beings, to work towards regulations that make it easier for companies to make money with holistic solutions that actually solve the problem than it is to make money with quick fixes that just cover the problem up.

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Vestas coming to Northern Colorado

It now looks likely that Vestas, the world’s largest wind turbine manufacturer will build a blade manufacturing plant in Nortern Colorado, near Windsor.  I’d guess that some of the factors that made Danish Vestas consider locating here are:

  1. The proximity to NREL’s Wind Technology Center for turbine testing.
  2. Amendment 37, which will require large investments in wind farms in Colorado.
  3. The State’s central location, making it easy to ship blades anywhere in North America.
  4. Political support for wind, especially from newly elected Bill Ritter and the Democratically controlled state legislature.
  5. Colorado’s excellent wind resource.

The 500 high-paying jobs will be ones wind advocates can point to when talking about the benefits of renewable resources over fossil fuels.


It’s official. According to this follow-up article in the Rocky Mountian News, transport was indeed crucial to winning the bid. In particular, they wanted a site with rail service.

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Secrets of the Utility Mind

I feel that many of us renewable energy activists do not understand how utility planners think.  To us, we see wind as cheap electricity, but to them it is the Predator (of movie fame), something that looks benign and friendly, but at any moment will wreak havoc on their grid by turning off unpredictably.

In order to have a constructive conversation with utility planners, I think it is important to understand their point of view.  This is my attempt to do that, with the hope by doing so, we will be able to engage with them more productively.

These are what I see as the underlying principles that shape the utility planning process:

There is no God but Reliability, and Least-Cost is his prophet.

Or, put another way,

The Holy Trinity of electric resource planning: The Baseload, The Cost, and the Holy Reliability.

I use the religious references to make a point: reliability is a religion for utility planners, and people become defensive and angry when you threaten their religion.   If we want to work with the utilities, we need to address their real concerns about intermittent renewable resources such as wind and solar.  And we have to work with utilities if we are going to modernize the way we get and use electricity. 

How do we deal with people committed to this religion?  By taking their concerns seriously, and helping them find solutions.   In short, when we hear “Wind is so unreliable,” we should say “That’s true.   Here are some ways we can take advantage of the benefits of wind without compromising the integrity of the grid.  We can be allies in getting regulators to approve rates that allow utilities to get a fair rate of return on these measures that improve reliability, while also allowing more wind onto the grid without impacting reliability.”

Why do we expect them to listen?  Because they already have and have to work to deal with a problem that is very similar to unpredictable generation from wind: unpredictable loads.  People and companies turn appliances and whole factories on and off unpredictably, and never once do they think about calling up the utility first to let them know that they should have the necessary capacity ready at the appropriate time.  Instead, we as consumers just flip a switch, and never expect that the lights won’t come on because there is not enough capacity.  If they don’t we get angry.

How do utilities accomplish this seemingly impossible feat of matching supply to capricious demand?  They do it with extensive load modelling, so that they can predict approximately how much  load will be on the system at any given time with a fair degree of accuracy, and by maintaining “Spinning reserves,” which are basically generators which are already up an running under very low power (hence “spinning”) and turning in synchronization with the current of the grid, like a non-hybrid car sitting at idle.

When there is a sudden increase in the necessary load, they can then increase the power produced from the spinning reserves almost instantaneously, like the motorist of our metaphor starting up when a light turns green.

There are many types of generation that can be used as spinning reserves, not only gas turbines.  Hydroelectric dams can work well this way, and can agreements with neighboring utilities to supply power when it is needed, on the theory that two different utilities will not have the same load patterns, and so both utilities can gain by trading power back and forth as needed.

There are many proposals circulating to increase grid reliability and ability to accept more intermittent resources.   As is usual in complex problems, there is no one solution, and in this case it will always be a combination of many of these (and some I don’t know about… please leave comments if you have ideas I’ve left out), and the mix will vary widely depending on the unique situation of any particular utility.

  1. More transmission.  Wind not only needs massive new transmission capacity to get the electricity from windy rural areas to the places that need power, but a more robust grid means that widely dispersed wind farms can all provide power to a single utility.  Since the weather varies in different places, this has the benefit of making the system as a whole a lot less variable.  Denmark sells power to Germany, Norway, and Sweden when their wind farms produce more power than they can use. 
  2. Moving to a national electricity system from the current system of regional grids would also ease the flow of wind power from one region to another.
  3. Time of Use/ time-based pricing.  Time of use pricing allows a utility to charge less or more for power depending on how much power is available at any given time.  Time of use pricing is currently a hodge-podge consisting of none at all for some utilities, and others that offer it (or even mandate it) for/to all customer classes.  Often time of use pricing simply consists of two prices: on- and off-peak, but the ideal goal for this is to actually have real time pricing, which will even depend on that day’s weather forecast (on windy days, electricity should be cheaper than otherwise.)  The ideal goal would be to eventually move all electricity customers to real-time or near real-time electricity pricing, so that customers who are willing to adjust their usage patterns are compensated for the service that they are providing to the system as a whole.
  4. Demand side management goes hand in hand with time of use pricing.  Demand side management involves giving customers incentives to keep their load from peaking too much at any one time.
  5. Dispatchable/Interruptible loads involve allowing the utility a certain amount of control over their customer’s energy use.  The classic example is installing a remote switch on an air conditioner, so that on a hot day, the utility can regulate it so that they don’t all come on a the same time, but rather take turns, lowering the peak demand on the grid.   Utilities typically pay their customers for this right for remote control.
  6. Large scale electricity storage: Pumped hydroelectric, flow batteries, hydrogen and stationary fuel cells, and compressed air energy storage are all ways to store large amounts of power when it is plentiful and cheap (on windy nights, for instance) until it is scarce and expensive (late afternoon and early evening.)
  7. Distributed energy storage, such as plug in hybrid or electric vehicles with vehicle to grid.  Vehicles which charge from the grid can be beneficial even if they are not capale of sending power back to the grid, simply because their owners can charge them only at non-peak times, a practice which is easy to incentivize with time of use pricing.
  8. New forms of generation that can serve as backup power.  Concentrating Solar with thermal storage, landfill gas turbines, and biomass gasification are all possibilities.  One often overlooked advantage of IGCC(“Clean Coal”) is that electric power from IGCC is generated by a gas turbine which burns the syngas product of the gasification step.  While it is quite possible that carbon capture and sequestration may never be made to work with IGCC, this is one reason (along with lower emissions of traditional pollutants and higher efficiency, which reduces carbon emissions for MWh generated) that renewable energy activists should prefer IGCC to old style pulverized coal plants.
  9. Increase energy efficiency, especially in appliances that are often used during peak times.  In most of the United States, peak load usually occurs on hot afternoons and evenings when air conditioners are running, so replacing an air conditioner with a more efficient one not only reduces overall energy use, it also reduced peak demand.  Once again, the institution of time of use pricing would give customers the incentive to upgrade the right appliances for energy efficiency first.   Here are two advances in efficient air conditioning I’m particularly excited about the Delphi HMX (formerly known as Coolerado), and thermally driven dessicant cooling.

For another well thought out perspective on energy storage, hop on over the the Ergosphere for the Engineer-Poet’s thoughts.

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