Wednesday, 28 June 2017

Climate Change in Ireland - The Inconvenient Facts

I've started a new You Tube channel today titled "Coming Up For Air", and the first video is a neat summary of the various points made about climate change on this blog over the years :






Monday, 5 June 2017

North South Interconnector - Worth the Money ?

Aside from the renewables aspect, the main justification for the North South interconnector is a deficit of reliable electricity generation in Northern Ireland.


Today, following the closure of old plant in the North, it is the South which is exporting its surplus electricity northwards - John Fitzgerald, economist.


Despite the signing of a local reserve services contract in 2015, the construction of the second North South Interconnector is the optimum solution available to alleviate this security of supply risk and allow the surplus of generation capacity which exists in Ireland to be counted towards security of supply in Northern Ireland - Eirgrid 2015.

Eirgrid now acknowledge that the commissioning of a new plant in Northern Ireland would help solve this problem :

In Northern Ireland, emissions legislation is causing a significant amount of plant to be restricted in its running hours, or to be decommissioned. This will lead to a deficit of supply. This situation would be alleviated by the second North-South Interconnector in 2021, or by the commissioning of new plant.

The assumption that South Ireland will have surplus generation to export to the North is now questionable due to new capacity market rules:

While we have reported a large surplus of plant in previous GCS reports, we now envisage that this surplus will be reduced if it is not required by the new Capacity Market. This is because the Capacity Market will only pay for enough generating units to meet the capacity requirement - Eirgrid 2017.

Interconnectors are fraught with all sorts of engineering and system problems. The interconnector from Northern Ireland to Scotland has suffered numerous faults and England no longer has enough surplus electricity to export to South Ireland through the undersea cable between the two countries (EWIC).  

The East-West interconnector (EWIC) connects the transmission systems of Ireland and Wales with a capacity of 500 MW in either direction. However, it is difficult to predict whether or not imports for the full 500 MW will be available at all times. Informed by the proposed I-SEM Capacity Market decision, we assume a 50% derating factor, i.e. 250 MW.

For the purposes of adequacy studies, we treat the Moyle interconnector similarly to EWIC, i.e. with a suitable capacity reliance (50% of 450 MW which gives 225 MW) to account for the uncertain availability of generation in Great Britain.

So assuming that the interconnector actually works for most of the time (granted this is less of a problem with overground land cables than it is with those placed under the sea), what happens if the exporting market does not have sufficient generation to export electricity through it ? Given the new capacity market rules and the planned data centres which will drive demand for electricity upwards in South Ireland, a new power station in Belfast would probably be the least costly and most secure solution to Northern Ireland's problems. 

Furthermore, if the new All Island capacity market will pay for surplus generation in the South to export to the North, then why not just allow the capacity market to pay for that generating plant in the North and save money on a completely new grid ?

Friday, 19 May 2017

Does Wind Energy Provide A Good Return on Investment for the Consumer ?

by Owen Martin

When we spend money to have our electricity generated by wind, how much are we saving on not having to import fossil fuels ? One might expect that € 1.00 spent on wind is € 1.00 less that has to be spent on fossil fuels. 

In 2015, wind energy received € 426 million in energy payments. Energy payments are what generators receive daily in the electricity market and are normally set by the price of gas. On top of this, wind receives a subsidy from the PSO Levy. For 2015, this amounted to about     € 85 million. Wind also receives 7% of its revenue in capacity payments so about € 35 million and 5% of wind energy has to be shut down for security reasons for which they receive about € 20 million in curtailment payments.  

 That's a total of € 566 million in direct payments to wind generators. 

According to the SEAI, wind energy displaced € 233 million in fossil fuels for 2015. That means that we have to spend € 1.00 on wind energy to replace 40 cents worth of fossil fuels. If we include the increased grid and system costs to accommodate all this wind, then of course the savings are even less than that. 

It's not the best value for money for the consumer but for greens value for money is not a priority and for the wind companies of course it provides a great return to shareholders.



REFERENCES

1) SEMO total energy payments for 2015 equals € 1.8bn

http://www.sem-o.com/pages/MDB_ValueOfMarket.aspx

Wind provided 23% of electricity according to SEAI, this means wind received € 426 in energy payments.

http://www.seai.ie/Publications/Statistics_Publications/Energy_in_Ireland/Energy-in-Ireland-1990-2015.pdf

2)  PSO Levy for 2015 :

https://www.cer.ie/docs/000967/CER14361%20PSO%20Levy%20Decision%20Paper%20%202014-15%20(New).pdf

Assumed that wind made up 90% of PSO payments to renewables.


3)  "Capacity payments accounted for between 7% (for wind) and 30% (for peaking plants) of generators’ revenue in 2013".

http://ireland2050.ie/questions/what-are-capacity-payments/

426m + 85m = 511 / 93% = 549m  * 7% = 38m

4)  "In Ireland, the dispatch-down energy from wind resources was 348 GWh: this is equivalent to 5.1% of the total available wind energy". 

http://www.eirgridgroup.com/site-files/library/EirGrid/Annual-Renewable-Constraint-and-Curtailment-Report-2015-v1.0.pdf

Based on what wind received in energy payments ( €426m / 6823GW = € 62.40 MW/hr) they received roughly € 21m in curtailment payments ( 348GW * €62.40)



Thursday, 18 May 2017

Trump's Intel Leak to Russians - Fake News ?

If President Trump leaked classified information to the Russians then that Intel must be something that was not already in the public domain. Otherwise, if it was, then it's a fake news story.

The intelligence related to an ISIS terror plot to hide bombs on laptops on board airplanes. This plot was reported by the media back in March :




According to another news outlet at the time, the source of the Intel was the US raid in Yemen :
CNN, citing an unnamed US official, said the ban on electronics on certain airlines is related to al-Qaida in the Arabian Peninsula and that some information came from a recent US special forces raid in Yemen. Reuters could not immediately confirm the CNN report, but Reuters has reported the group has planned several foiled bombing attempts on Western-bound airlines.

The raid in Yemen happened in February and was much publicized in the media at the time :
The US special forces members targeted the compound of a suspected senior AQAP leader in the mountainous Yakla region of Bayda province - the focal point of recent US drone strikes in Yemen.
So both the ISIS plot and the exact location in Yemen where the Intel originated was in the public domain by the end of March. Trump gave the Russians information that they could have found with a quick google search.

Wednesday, 17 May 2017

The Trump - Russian Narrative Fails Basic Logic Test

“It is very easy: If you can put Russia in the equation you win your argument,” - George Epurescu, Romanian Anti Fracking Group

In 2014, many media outlets such as the New York Times, The Guardian, and Financial Times were reporting that Russia may have been financing anti fracking protest groups around Europe. Their source was the then head of NATO, Anders Rasmussen. According to Wikileaks, even Hillary Clinton was privately worried about Russian influence in anti fracking movements in the US. Bloomberg recently reported that since US overtook Russia in gas production, the Russian TV Network, RT has :


"regularly published articles and aired segments that appear to oppose fracking, the fossil-fuel extraction technique that has made the U.S. an energy superpower again. One "exclusive" interview about the extraction technique features the opening question: "There are a lot of studies that say fracking is dangerous, so why do you think some countries and companies think it’s worth the risk?" 

This tends to support the initial claims made in 2014 by the head of NATO. There is of course a clear motive for Russia to get involved in anti fracking movements and to provide a platform for anti fracking propaganda on RT - to keep gas prices high and reduce competition. 

The logical next step then is for Russia to have backed an anti fracking party in America like the Greens or indeed a candidate like Bernie Sanders but certainly not someone like Donald Trump who is a strong advocate for US gas, coal and oil. Russia exports about $8 billion in petroleum products to the US each year. Even if the claims in 2014 about Russian influence in anti fracking movements are false, there is still no clear motive as to why Russia would back Trump. 

As George Epurescu says, "Russia" is now an argument and a counter argument to almost everything. You can dispense with the inconvenient need for basic logic and reason to support your arguments and just claim "Russia" which elicits the necessary emotional response required to make it look like you actually have an argument. 

Sunday, 14 May 2017

Irish Nationalist Political Party declare sovereignty as "backward-looking idea"

One of the most remarkable political speeches in my lifetime was made this week in Ireland's Parliament. Yet the Irish media were entirely silent on it's significance. 

The two major political parties in Ireland, Fianna Fail and Fine Gael, split in 1922 because Fianna Fail considered the Treaty that Ireland made with Britain didn't go far enough in terms of granting sovereignty back to Ireland. In 1921, the President of Ireland and future leader of Fianna Fail until 1959, Eamonn De Valera, made the following speech :


PRESIDENT DE VALERA: We definitely understood when we used the word plenipotentiaries. One of the Deputies of South Dublin asked me about the word and I said we understood it means they have full power to negotiate and to take responsibility for negotiating and signing. The word really meant the power of negotiating. They had their own responsibility for negotiating and signing. There is no treaty in recent times that is not brought to the main assembly for ratification or rejection. The plenipotentiaries have full power to negotiate and sign, they have not full powers to sign for the nation. I hold ratification is absolutely impossible for this Assembly. This Assembly cannot ratify a Treaty which takes away from the Irish people the sovereignty of the Irish people.

Almost one hundred years later, the current leader of Fianna Fail, Michael Martin, made the following speech :


Let there be no doubt about where Ireland stands. We want nothing to do with a backward-looking idea of sovereignty.

He went on to say, presumably aiming for some kind of statesman like ideal :
"We remain absolutely committed to the ideals of the European Union."We see the union for what it is - the most successful international organisation in world history."The union is flawed, but its successes are undeniable."
It is hard to think of any EU successes that relate to Ireland. It was the EU who forced Ireland to pay billions of euros to unsecured bondholders. The EU might be successful for some, for corporatism and Statists and for Germany who benefit from the cheap currency, but for small nations like Ireland we are easily nudged aside. That's why Iceland has remained outside of the EU. Hoping that Ireland will somehow be treated nicely by the EU in the Brexit negotiations is not backed up by past experience.

It was Ireland's sovereign status which allowed De Valera maintain Irish neutrality throughout World War II, a success which helped make Fianna Fail the most popular party for generations afterwards. Now that they want to discard sovereignty (or outsource it to Brussels), Ireland can no longer remain neutral under Fianna Fail.   You can't have neutrality without sovereignty. 

Although I doubt it was the original intention, Fianna Fail have in effect, fought for Irish sovereignty, not for the right of the Irish people to have sovereignty but for the right to throw it away to someone else.  



Saturday, 22 April 2017

Emissions Rise at Ireland's Power Stations Despite €6 Billion Investment in Wind Energy

One of the things consistently pointed out on this blog is that no matter how much wind energy you deploy, you can never shutdown a single power station. Those who advocate for more wind are slowly realizing this as more facts come out. 

Last year (2016), electricity demand in Ireland rose by about 2.3%.  An additional 600MW of wind was added to the system but the capacity factor (a measure of the annual output from wind farms) fell from 33% to 27%. Also during 2016 the limit on the amount of wind allowed into the system at any one time (non synchronous penetration) was raised from 50% to 55% and then at the end of the year to 60%. 

According to reports by the EPA, emissions and fuel consumption increased in eight out of the eleven power stations for which records were available for 2016. 

Six of these power stations were operated by gas, the other three by oil. Poolbeg (gas), Tarbert (oil) and North Wall (gas) power stations had the largest rises in emissions. Aghada (gas) and Tarbert (oil) power stations had the highest emissions since 2011, while Rhode power station (oil) had the highest since 2007.




Power station
Emissions Increase 2016 Vs 2015
Highest Emissions Since
Fuel Type
Aghada
72%
2011
Gas
Huntstown 2
19%
2013
Gas
Poolbeg
366%
2014
Gas
North Wall
249%
2013
Gas
Great Island
61%
Commissioned in 2015
Gas
Tynagh
70%
2014
Gas
Tawnaghmore
14%
2010
Light Fuel Oil
Tarbert
240%
2011
Heavy Fuel Oil / Light Fuel Oil
Rhode
93%
2007
Light Fuel Oil

Note the three oil run power stations at the bottom all had the highest emissions for many years.

Factors that lead to these increases were :

• The interconnector to the UK was out for four months at the end of 2016. This would partly explain the increases in Dublin power stations such as Poolbeg and North Wall.

• Electricity demand increasing by 2.3%. With new data centres on the way, demand will soon increase by much more than that. 

• Capacity Factor of wind dropping from 33% to 27%. It's an unfortunate fact that no matter how many wind farms there are, if there is no wind, you get no energy. Storage wont fix this problem either as the original energy source is still intermittent wind energy that can remain flat for months on end during periods of high pressure.

• The low price of oil and gas. 

• The low capacity credit of wind energy. Ireland now has 3,000MW of wind, but all these wind turbines cannot replace a single power station. All the power stations must remain on standby. An additional 600MW of wind was added in 2016, roughly a 25% increase on 2015. The only solution for this is nuclear. A nuclear power station can fully replace an existing power station and hence achieves much greater and much more consistent fuel and emissions savings in the long run than wind ever can.

How ironic that Ireland is now dependent on oil again for it's electricity needs after spending close to €6 billion on wind technology and another billion or two on grid upgrades to accommodate this wind. If this is not an indictment of the wind program, then I don't know what is.

Sources :

1) EPA Environmental Reports

http://www.epa.ie/terminalfour/ippc/index.jsp

2) Eirgrid Renewable Energy Curtailment Report 2016

http://www.eirgridgroup.com/site-files/library/EirGrid/Annual-Renewable-Constraint-and-Curtailment-Report-2016-v1.0.pdf

3) Cost of wind is estimated to be €2 million per MW installed.  




Friday, 14 April 2017

Ireland will fail to meet Greenhouse Gas Targets - EPA

by Owen Martin

The EPA have announced that Ireland will miss it's EU Greenhouse Gas emission targets for 2020 because of a growing economy and increases in agriculture and transport activities. The media are warning of EU fines.

Firstly, the EU is in no position to enforce fines for failing to meet emissions or renewable targets. The UNECE Aarhus Compliance Committee have repeatedly issued rulings stating that the EU are in breach of the Aarhus Convention in relation to Ireland's renewable energy plans. So unless Ireland decides to simply lie down in the face of bullying European Union bureaucrats, there will be no fines. 

Secondly, consecutive EU policies have resulted in increased greenhouse gas emissions. By allowing beef imports from countries like Brazil into the EU, shipping and transport emissions will have increased. As Marine Le Pen has pointed out, if you want sustainable agriculture, then grow your own crops and invest in your own farms. The last thing that should be done is to ship beef into your country from 5,000 miles away. 

Another EU policy is that member states should accept millions of refugees. This will increase demand on food, electricity, housing and other resources increasing emissions. 

EU energy policies have increased electricity prices and driven energy intensive industries outside of the EU effectively outsourcing emissions elsewhere on the (same) planet. 

To whom do these policies benefit ? To whom would a fine against Ireland benefit ? It is exactly because of the contradictions inherent in EU policy right now that it is becoming ever more unpopular.



Sunday, 9 April 2017

Freak Out! - How "Science" Caused Mass Hysteria in the Past


 “To capture the public imagination . . . we have to . . . make simplified dramatic statements, and little mention of any doubts one might have. . . . Each of us has to decide the right balance between being effective and being honest.” - Stephen H. Schneider, 1989, in an interview in Discover.




To people who believe in climate change, science is something truly unique in human history - infallible and incorruptible. The reality is that science has got things wrong in the past or perhaps a more accurate statement is that doubts in scientific theories have been suppressed
producing a false or incomplete picture to an unsuspecting public. The people doing the suppressing of selective information are not usually scientists but eco-loons, politicians and the media. Most scientists will likely agree that doubt is a good thing.

The more physicists discover about distant galaxies (e.g. accelerating away from us) the more they find out that current physics models, as good as they are, are incomplete. They have no choice but to invent new theories such as dark matter to fit new information. The doubts remain and are acknowledged by physicists. The media and other propagandists have found no reason yet for reporting that as a result of accelerating galaxies and dark matter our planet is in grave danger.

The mass hysteria that accompanied the Acid Rain theory in the 1980s is a good example of where suppression of scientific doubts lead to rash and costly policy changes.

Acid Rain Mass Hysteria by Pat Swords


While one should not generalise, one also has to acknowledge that there are cultures in organisations and countries, which strongly influence behaviour.


Company cultures are like country cultures. Never try to change one. Try, instead, to work with what you've got. • Peter Drucker - Austrian-born American management consultant, educator, and author 

For instance, Irish people have a near pathological obsession with being seen ‘to be nice’ and wanting to be liked, such that when something goes wrong, they are often unable to challenge and confront it; often for fear ‘that they might upset somebody’. The former US Ambassador to Ireland, Jean Kennedy Smith put her finger on it, with her famous statement about the ‘Irish lacking a proper sense of outrage’. On the other hand if one takes the Israeli culture, which is brash and somewhat confrontational, when Irish people come up against such behaviour, it ends up ‘freaking out’ many of them. Germans on the other hand have always suffered from a collective ‘Angst’, in which doom and dread is predominant. They just can't help being gloomy. Instead of sitting back and accepting simply that what will be, will be, not to mention getting on and enjoying it, they agonise. As a result there is a collective fear of the unknown. Mad cow disease, swine fever, bird flu, nuclear plants, global warming - who on the planet is most alarmed? That’s an easy question to answer isn’t it? Neither do Germans learn well from history; they started one world war with devastating results and did the same again by starting another world war less than twenty one years later.  
• Die Geschichte wiederholt sich – history repeats itself
Those who don't know history are destined to repeat it. Edmund Burke - Irish statesman, author, orator, political theorist and philosopher

Understanding history and culture is very important; it does and will influence us. 
'Whoever wishes to foresee the future must consult the past; for human events ever resemble those of preceding times. This arises from the fact that they are produced by men who ever have been, and ever shall be, animated by the same passions, and thus they necessarily have the same results.' • Machiavelli

The late 1970s and 1980s in Germany was characterised by growing public concern over damage to forests, the so called ‘Waldsterben’ or dying forests, a circumstance which was referred to as ‘acid rain’ in the English speaking world. In hindsight we can learn a lot from this issue, such as is documented by the Food and Agricultural Organisation of the United Nations (FAO). The hype and ‘frightening scenarios’ got out of hand, it was the central ‘dogma’ in Germany that an unprecedented decline in all tree species in central European forests was occurring, as a result of a complex disease of forest ecosystems triggered by air pollution. However, the results of a decade of research are not compatible with the central dogma of the Waldsterben concept. As the FAO concluded in relation to this research, it “rather confirmed the occurrence of non-synchronous fluctuations of forest conditions and recurrent episodes of clarified as well as unsettled species specific declines”. In other words impacts related to natural variations and plant diseases. 

As to the main lesson to be learnt: 
• Waldsterben may be understood as a problem of awareness: forest conditions that were believed to be "normal" in earlier times suddenly became a symbol of the growing fear of the destructive potential of human activities on the environment. However, holistic concepts such as the Waldsterben hypothesis are of little help in solving problems. Rather they raise emotions and lead to premature conclusions. To gain a real understanding of the multitude of decline phenomena in our forests, we must continue to analyse symptom by symptom, species by species and site by site, according to the classical principles of phytopathology and forest science in general. 

You could substitute the ‘weather’ for ‘forests’ in the above and it would become very much ‘up to date’. However, the political fall-out from the above was that draconian legislation was introduced in West-Germany in 1983, which meant that 70 large coal fired power stations were in a short period of time retrofitted with emissions controls for sulphur dioxide, amounting to some 14.3 billion DM in investment (€1 = 1.96 DM). However, this was rushed, equipment suppliers were overloaded, etc. such that it was later the opinion of one analyst, that if this investment had been done later, as was the case in other Member States, it could have been done a third cheaper. While the political impetrative for completing it, namely the ‘Waldsterben’ was false, fortunately it did lead to a benefit in terms of human health, which is why such pollution control is now essentially standard for new coal plants globally. 

Many people think that Germany is very rational. As a German speaker and as somebody who has worked there regularly, there is no doubt that individually their technical people are highly rational, but collectively the country is anything but, in particular when ‘Angst’ gets a grip. There is also the undisputable fact that ‘Made in Germany’ is a big brand and there is a cultural tendency in Germany to be ‘technology forcing’, such that it is foreseen that their industry will then become the resulting ‘technology providers’ elsewhere. They also use this ‘perceived benefit’ to regularly dismiss the ‘inconvenient truths’ associated with some of the policies they have adopted. 

This is important, Germany is not only the economic driver of the EU, but has been also driving EU policies, particularly in the area of environment and energy. If these are being driven by ‘Angst’ and not what is rationally evaluated as beneficial for the EU-28 as a whole, then ‘Houston we have a problem’. 

Currently, these problems are increasingly glaring. The German ‘Angst’ over nuclear energy and the resulting mad rush into renewables (Energiewende) was justified that Germany would be the manufacturing power house for wind turbines and solar panels, for which there would be a huge market place, as other countries followed suit. It didn’t happen that way, cheap Chinese solar panels and turbines flooded the highly subsidised German market, while on a global basis the demand for such technology collapsed. Other countries did not follow the German ‘Energiewende’ – expectations that ‘they think like us’, when clearly they don’t and never had, is a very dangerous premise, but often repeated as people do not learn from the past and different cultures. 

Ireland is of course in the back seat of EU energy policy, but if you are in a motor car speeding along with the doors shut, you really should understand the behaviour of the driver and as to where he or she is taking you.  

Wednesday, 29 March 2017

The Impact of High Levels of Wind Energy on Conventional Plant

On Wednesday 25th January 2017 wind energy reached a new record of 2,400MW for the Republic of Ireland. This post will look at the impacts on some of the other generation sources.


CCGT ( Gas)




Only three out of eight CCGT ran during the day - two in Dublin (Poolbeg and Dublin Bay) and one in Cork (Whitegate). Presumably, the other 5 plants were paid capacity or constraint payments to shut down for the day.

Wind generation was unusually stable during the day and so Dublin Bay and Whitegate mostly followed demand while the output from Poolbeg had a flat profile. Dublin Bay ran the most efficiently. Whitegate's output hovered between 45% and 60% of it's maximum (or rated capacity otherwise known as load). Poolbeg, on the other hand, operated at about a quarter of it's rated capacity. Operating a CCGT at this level leads to higher specific emissions and fuel consumption, something like driving your car in second gear all the time. 

It would have been therefore preferable to have operated Whitegate on higher loads and take Poolbeg off the grid altogether. The requirement for two power stations to be on load at all times in the Dublin area probably lead to this less than ideal situation.


Coal 




Two out of the the three generators at Moneypoint operated for the day and like the CCGT mostly followed demand.   They operated at an average of 50% of maximum output with minimum output at 40%. A load of 40% capacity is likewise not exactly ideal in terms of efficiency. 


Peat





The three peat power stations are being run on baseload and as a result are not affected by high wind levels. The biomass component seemed to be out of action. The question arises as to why (like wind) peat still receives a subsidy if it is always allowed to operate in the electricity generation market (Though I think the peat subsidy is being phased out). 


OCGT (Gas)




Both open gas cycle units at Sealrock operated at close to full output for the day as like wind they have priority dispatch in the system.


Demand Side Units (DSU)




One relatively new problem for Eirgrid is that despite having all this additional generating capacity in place, matching supply with demand is not as straightforward as previously thanks to the presence of stochastic wind energy. Fast acting plant is one answer to this. Another solution is reducing demand during periods of high demand. Demand side units reduce the demand during peak times giving industrial users a choice to shut down production or use their own diesel generators. 

As more wind is added, more reliance will be placed on DSUs and ironically diesel generation. During this day, on average 18MW per hour of DSU was called on to help keep the lights on. Not a significant amount at this stage. But according to Eirgrid :


The capacity of Demand Side Units in Ireland has increased to 230 MW, and is set to increase further. 


East West Interconnector to UK (EWIC)

The UK interconnector played a crucial role on this day. For most of the time, Ireland sent across it's surplus wind but for an hour, between 6pm and 7pm, Irish generation was insufficient to meet the rise in demand as people arrived home from work and turned their kettles and cookers on. It's an unfortunate fact that you can't "switch the wind on". Also you can't simply switch a large power station like a CCGT on. 

The preferred solution by Eirgrid, presumably because it was cheaper than the other option discussed below, was to reverse the direction of electricity in the interconnector. However, the UK was strapped for generation at this time and (incredibly) France were reliant on UK imports. A precarious situation for the UK but 120MW of spare power for Ireland is not a significant amount for a system of their size.




There is still a shortfall of about 200MW at peak time (where blue line is higher than orange line in the second graph above) which I'm not sure how they made up. Possibly more hydro or DSU or some other peaking plant that I may have missed.

The other option available to Eirgrid would have been to simply increase output from Poolbeg as the demand began to rise. After all, it was being operated at well below optimum efficiency as discussed above.  This is presumably what would have happened if there was no interconnector. Usually the low cost of power purchased from UK would make importing a cheaper option but I can't imagine a grid with such a tight capacity margin as the UK's giving away low cost power during peak demand times. But I can only assume it was somehow cheaper in this case.


The power UK sent to Ireland was made up mainly of gas and coal generation with some nuclear and wind : 




The generation mix for the day is given below  :




Monday, 27 February 2017

Why does Wind Energy still require a subsidy ?

In 2015, wind generation accounted for 22.8% of the electricity generated and was the second largest source of electricity generation after natural gas - SEAI.

The SEAI have reported that wind was the second largest source of electricity generation and ahead of coal power for the first time in 2015.

This means it is now providing a considerable amount of power in a given year. Neither gas or coal power receive a subsidy. Instead they receive the market price.

Coal produced the same amount of power in 2014 as wind did in 2015 (22%) but without a subsidy.

So this begs the question - why does wind power still require a subsidy to compete when it is now out-competing coal ?

Friday, 24 February 2017

Ireland's Debt Problem

An economic policy based on rising debt and low corporate tax rates is not and never was sound policy - by Owen Martin

While the Irish media make a fuss over who will be the next leader of Ireland's biggest political party (Fine Gael), everybody ignores the real elephant in the room. According to the European Banking Authority, Ireland has the largest combined private and government debt as a percentage of GDP in the EU and two thirds higher than that of the US. 


 I'm not sure how this graph is not sending shockwaves through the Trump obsessed Irish media and political establishment - From EBA 


   
While Greece, Italy and Portugal have higher Government debt, Ireland's private sector debt to GDP dwarfs those countries. Which means that for the size of Ireland's economy, it's private sector has taken on alot of debt.

But not only businesses and industry. We have the 5th highest household debt as percentage of net disposable income in EU with about twice as much debt as income per household. This may explain how we rank so high in numbers of new cars across the EU.   People are taking out car loans that perhaps they can't really afford. It shows that we as a nation are still addicted to debt.





Denmark, Netherlands, Iceland and Norway all have higher household debt than Ireland but these countries are doing much better when it comes to Government debt as percentage of GDP. Ireland ranks 5th in terms of Government debt to GDP. So while Greece and Italy have higher levels of government debt, they have about half of the household and private sector debt. Denmark's high level of household debt doesn't seem as bad considering they have half of Ireland's Government debt to GDP. 







Norway have the wealthiest government in Europe. In fact, they are far ahead of second place Luxembourg and Finland. Norway has slightly more household debt than Ireland. But that kinda makes sense - they are a wealthy country. Ireland has the 5th poorest Government in Europe (Italy and Greece lie at the bottom). Our government has dismal revenue, in part thanks to our low corporation tax rates. Yet we carry roughly the same household debt as Norway and have an even higher private sector debt to GDP.  This is called "living beyond our means".  Yes, Ireland could do with the € 13 billion in tax revenue owed from Apple. Laughably, the Irish government is appealing this decision





Irish Govt has the worst revenue in Europe yet reject a €13 billion EU tax ruling made in Ireland's favour

Of course if all that debt was used wisely, perhaps we could become richer. We are reliant on Norway's gas which arrives to us through UK pipelines. The Irish government have banned fracking so this dependence will continue for the foreseeable future. Imagine if some of that debt was being used to extract our own gas reserves.


Ireland spends the most on health after Iceland in Europe, yet we still have a permanently dysfunctional health system

Ireland has the third highest electricity prices in Europe.

The Irish government takes pride in divesting from fossil fuels and pushing through massive renewables and electricity infrastructure programmes that cost billions and without any proper assessment in the name of climate change.  We pride ourselves on having a massive welfare program and our representatives want to take in more refugees (without any proper assessment). Green/Left politicians cry out as to why we don't do more to tackle climate change, take on more debt (One cannot go the EIB looking for €5 million or €10 million; one needs to go looking for €2 billion. It is there.) and take in more refugees. Ireland is trying to save the world on a sinking ship but our politicians and media don't even realize we are on one.  Have we learned anything from the crash in 2008 ?


POSITIVES





On the positive side, exports are still strong and benefit from the stronger dollar as against the euro. If we went back to our own currency, it would be a strong one as the above graph shows. Presumably thanks to our exports. However, the weaker sterling is not good for exports to Britain. There is a chance that Ireland may actually benefit from Brexit if companies there relocate to Ireland. 



https://data.oecd.org/gga/general-government-deficit.htm#indicator-chart



Ireland has managed to get out of it's budget deficit abyss and back to something fairly normal. If Multinationals move out we could see some real problems, but we would no longer see the massive distortions to our GDP anymore. Perhaps that could be a good thing in the long run. Living on a false economy (now known as Leprechaun economics) is what got us into trouble last time.

I can't see how Ireland's economic fundamentals are much different to that of the Celtic Tiger era.   If anything, things have got worse.