
Originally Posted by
fiannafailure
Lets have a look at Denmark
Denmark, because of its location, is a colder place than Ireland and was hit very hard during the oil shocks of the 70's.
For those readers who are not yet past forty, this was not a good time for the first world, the cost of living almost doubled although wages didn't, in Ireland it spelt the end of a period of growth in living standards undreamt of in the early sixties, before the oil crisis, we had almost full employment, after the oil crisis, we had 20% unemployment.
People queued for hours to get 5 gallons of petrol and the country almost ground to a halt. Many factories closed or reduced to working a 3 day week, there was simply not enough energy available to power the country.
The Danish government decided never to be in that position ever again and set ambitous targets for oil independence, they decided to aggresively develop district heating systems using for example waste heat from powerplants which had to be oil independent and invested in coal burning power stations.
They decided also to incentivise energy efficiency with the imposition of an electricity tax and decided to both explore for oil and investigate renewable energy.
All of the above was done in public consultation and was endorsed by the electorate.
One of the subjects that emerged from this public consultation was that communities wanted to become involved in the ownership of this new renewable energy idea.
Money was invested in the wind turbine companies and to a very large extent they drove the development of wind energy from small turbines to the utility scale turbines we now have.
The result of this great national experiment is
1) A turbine manufacturing industry which now securely employs over 40,000 people.
2) A renewable energy research industry which employs almost 5000 more.
3) Community owned energy co op's which provide funds for locally important projects, which in turn employ thousands more.
4) Denmark has reduced its national CO2 output whilst substancially increasing its GDP, an achievement unmatched by any other country, although Spain and Portugal were close for a while, they are now begining to convert some coal stations to biomass, which will decrease their CO2 output again and in the absence of suitable sites for pumped hydro, they are also beginning to use constrained wind in those district heating systems to create steam.
5) Denmark is part of the Nord Pool electricity market along with Norway, Finland and Sweden, this market regularly delivers the lowest wholesale electricity prices in Europe, usually on the days that the wind is blowing strongly..
6) The Nord Pool uses quite a lot of derivetive type contracts, which in effect means that Denmark can at times sell wind energy to Norway, for use pumping fjord water into their conventional hydro plants, at below cost and still make money. The availability of energy has a value in contracts of this type.
All told Denmark has done very well from their experiment in renewables and the experiment just continues to give value to their economy as oil prices rise.
An employee of the Danish National Grid recently told me that Denmark would go to war to have the pumped hydro capability of Ireland, but they were a bit busy at the moment.
So in conclusion, wind energy is economically valuable if used correctly.
Intermittancy can be countered in two ways,
1) 100% back up from fast acting variable gas turbines, which negate any carbon savings and increases the cost of electricity.
2) Pumped storage, which will cost 20% of the energy but means you do not haveto build and run the gas turbines as back up, you get to keep the carbon savings and you also achieve the efficiencies of being able run conventional power plants in their most economic mode, full output, which saves even more carbon and most importantly saves money.
One more comparison.
An open cycle gas turbine has a useful life of about 20 years.
A pumped hydro station has a useful life of centuries.