This post is a republication of mine focused on "Rate Payer Fairness" as it applies to Green power projects, particularly Big Wind and Big Solar.
I hope this post also serves the reader well as the "lense" you should use when examining any substance that might be discovered in AOC's supposed New Green Deal.
If you can find any substance (other than the crack she has been smoking) let me know, I am all ears and welcome constructive input, otherwise bugger off.
Looking at the Smart Green Energy Project challenge another way, how do you stop the Rate Payer Rip-0ff by Big Energy Companies developing some of these giant Big Wind and Big Solar Projects?
First, let it be said I am all for Green Energy provided it's Smart Green, which means I, the rate payer, should not have to "take it in the shorts" with ever increasing and higher power bills monthly, a la the Ontario Rate Payer the last 5 years, by largely subsidizing big wind projects so they can sell their power at a loss cross border to New York State and still make a profit, while my rates go up 45% in the process over the same period to subsidize that profit, all done in the face of energy demand in the province declining 16% over the same period. Go figure.
Most of the Green Projects on this planet, if not all, fall into the category of "Dumb Green Projects".
Here is how "Dumb Green" looks..
First let's be clear, the original 7 deadly sins under pin the 12 sins listed below :)
The 12 Deadly Sins of Big Wind and Big Solar in a Dumb Green Project:
- 1. No Viable Energy Storage placed with the Generation Project
- 2. 50% tranmission and distribution losses on average before the Power gets to the actual source of use. (This applies to all grid based centralized power generation.)
- 3. Hidden Subsidies and Kickbacks (all power generation projects, Coal, NG, Nuclear, Hdro, Wind Solar, GeoThermal, Combined Heat Power "CHP/NG , etc..,)
- 4. Poor Siting of the Generation Site (particularly Big Wind and Big Solar)
- 5. Poorly architected FITS "Feed in Tariffs"
- 6. Rigged Service Operator Rates for large "Behind the Fence" Power Generation Surplus Sales (Power Purchase Agreements- "PPA" by so called "IPPs" Independent Power Producers, back to the Independent Service Operator "ISO"
- 7. Government Grant subsidies for so called new technology research, development and early commercialization
- 8. Carbon Credit Acquistion
- 9. Ignoring ALL Life Cycle Costs of Power Generation and Storage Sites
- 10. Export of Capital to fund Imported Generation Equipment
- 11. Big Wind and Solar Give Great Marketing!
- 12. Leftist Politicians Use Big Wind and Solar to garner votes and kickbacks.
There are many many more points, the above 12 are my Top 12picks. (Plus a bonus 13 down below.)
I will cover each of these points in separate posts moving forward, "with the facts Jack!" (and yes I will edit and add links from this main article :) so stay tuned to the Thunderboltkid channel).
Suffice it to say any person of reasonable mental capacity can see by the above list how the rate payer sheeple get shafted.
How to AvoidFix the 12 deadly Sins of Dumb Green Big Power Generation in the Green Power Market Segment.
How does all this happen while ensuring the rate payer gets shafted in the process, everytime?
One phrase says it all, "Lack of Transparency".
Ok you guessed it this is where I ramble a bit on Blockchain tech, particularly public versions and why they are so important to Smart Green Energy Projects.
To avoid and fix these 12 deadly sins, add transparency to your Green Project and make it "Smart", that is efficient and low cost, to handle all data transactions, immutable and mutable. To do this you need to be operating on a transparent (not anonymous) distributed public ledger/blockchain. Why? Well, first, you want to lower overall wind farm developer project operating costs and; second, you want to leverage the communication capabilities and immutable store features of the public transparent blockchain you select to help manage your power generation and storage in Real time "RT" and; third, you want to report the data in public to the ledger to aid faster settlement with the ISO (they take along time paying you for your power produces. IN the case of number 3, it's because of accounting dept. "bun fights" (that is you want to avoid the current long delays of getting your money as an IPP for power produced and sold to the ISO).
To realize your overall goal in your Smart Green Project, which should always be making sure you are operating your power generation at maximum efficiency with high margins paid back to your IPP business ( and so you can also pay investors great dividends/returns and offer fair end user power rates through open power market platforms/exchanges), you wil want to be using distributed transparent blockchain technology to achieve your calls, and at some point in th early future also facilitate timely particpation in the buy/sell cycle of various power markets, all enabled by distributed transparent blockchain tech.
n.b- How to add public distributed ledger tech into your Green Power Project to make it "Smart" we will cover in future blogs and posts linked back to this main article. :)
Public Blockchain bring Transparency and Accountability to "SMART" Green Projects to Protect Rate Payers
In short, "Public Blockchain Tech" is a necessary ingredient of Smart Green Projects.
So what is public blockchain and why is it so important to Smart Green energy projects?
First let me go on record by saying very few green projects use public blockchain today. You can count the successful ones on one hand. It's that early.
Second, very few people, less than 100 by my own estimation, on this planet, at the time of this writing, really understand how to fully take advantage of public blockchain in a Green Energy Project. Bits and pieces of "know how" are scattered among the brains of early innovators far and wide geographically and across different block chain technologies public and private. So the current state of affair, as it applies to public blockchain and Smart Green energy projects, is a bit like the wild west days deploying your first water pumping wind turbine to feed your livestock in the 1800s, lots of choice/variety and not much info on performance and reliability. It's a bit of "crap shoot". So let's say we are in an era of Wild Blockchain Partys, where several parties are engaged on their own tech islands, trying to figure out how to best leverage what is real, public distributed ledger technology (found in the open source respositories of Github, Gitlab, Bitbucket etc..,) which ensure a permenant record of protected transactions (ummutable data stores) and which have added communication and electronic cash transaction features which can help create really help wind and solar farm developers create a Smart Green Energy Project with greate returns for the investor and cheaper power for the rate payer, without a subsidy of any kind.
And yes, even the "Dougs" of the Power world, "Dumb Old Energy Guys" are getting involved (at their own pace, I might add) trying to control the pace and adoption of the technology (read milk existing profits and subsidies) directly and through their shared research organizations. Well I say good luck to those Dougs and their research collaborations (it aint gonna happen), as the Blockchain market is like the "genie out of the bottle".
Blockchain works, it can't be turned off (unless your turn off the entire Internet) and it's bigger than the beginning of the Internet, all over again, 20 years later. The "Sky is the limit" on what can be done on all Blockchains, and its all driven by software and hardware geniuses, and Fintech geniuses, working together with a new generation of entrepreneurs who really don't care what the Dougs think and do. And most "Smart" communities are behind them 100% in a "ground level" up adoption of public blockchains to help run their cities and towns more efficiently as Smart Cities, to give the rate payer of both the municipal tax and power bill type a "bigger bang for their buck", in terms of better service, cleaner, greener power and a better quality of life overall.
The first takeway about public distributed ledgers then, is they are a form of "free speech" represented by "transparent" records of transactions ( commercial, votes, opinions, facts, etc..) hosted by distributed computer nodes interacting with one another to verfiy the validity of the data before posting the contents of the transaction into a permenant record visibile for all to see from anywhere on the internet. Accountants and Lawyers not included.
No more intermediate trust funds handling "unseeable" transfers (and the scandals which go with them).
Blockchain is in its base form, Machine to Machine stuff operating "open Sourced " algorithms, which anyone can download, inspect, validate, use and also incorporate in their own versions of the system, and set up the blockchain node on their own computer to connect to the existing public distributed blockchain system to communicate and transfer data and "stores of value" as cryptop tokens or crypto "coins, inflation proof electronic currencies, which can be sent to and from any computer anywhere on the planet to the crypto protected wallets which operaste on the computer, in the browser or via a usb port quiet easily. (in certain public blockchains a transfer will take less than a minute, across any border. Nice!)
Distributed Public Blockchain is really free speech, coupled with an inflation proof store of value and unit of account protected by very strong software cryptography, where some leading public blockchains are also starting to deliver decent transaction per second "TPS" processing power, many of which rival the fastest credit card and debit card processing networks from Visa, MasterCard and Amercan Express and, can easily compete with Internationl transfer system like SWIFT. But I digress. (And will cover this in later linked blogs and posts)
Back to the matter at hand. Smart Green Projects on the public blockchain. To be a SMART Green Project, which in the end, rewards the investor handsomely without screwing the rate payer, the Smart Green Project Developer needs to think end to end, cradle to grave, from: the point where the creation of power(electricity) occurs; through the settlement phase of power with the ISO all the way to the payment of proceeds from the sale of power to the power project investor as a dividend or annuity, detailing the use cases along the way, with the test case pass/fail metrics properly set as requirements, before they even start to evaluate the merits of different public "blockchains", or distributed public ledgers they might use to realize a truly Smart Green Project. So that is the starting point. Think End2End on a Distributed Public Blockchain, get educated and start dreaming how to shape the future of this world and your Green Energy Project into something really smart which serves everyone a bit better at lower cost with perfect transparency. (No more graf, underhanded deals, etc..,) In future blogs and posts I will link back to this article to keep you all organzied interested, and motivated about building a Smart Green energy Project on a Public Blockchain with great transparency (not all blockchains are created equal).
so stay tuned into the Thunderboltkid. :)
The Bonus 13th point?
13. Capacity Factor Fakery by Equipment Vendors
This point (or 13th deadly sin commited by Dumb Green Project Developers) deserves its own post, which I will treat as my next post, showing how Capacity Factor is really the root cause of "rate payer rip-off".
In the world today there is not a single Big Wind or Big Solar project which is not subsidized directly or indirectly by the rate payer and, it's because both big wind and solar have lousy Capacity factors (see chart below) compared to Thermal(Coal, NG, Nuclear fired electricity generation is always north of 50% often in the 60% Capacity Factor range).
What does that all mean? Well when the vendor says the equipment has a capacity factor of the maximum amount of power the system could produce on its best day continuously, that capacity factor value is a percentage of the "Nameplate Power" or NP of the system rated in Megawatts. As you can see below Geothermal is the champ and why Iceland enjoys such a high quality of life standard (their GEothermal Capacity Factor of 86 to 95% is a type of "hyper-capitalism which fully supports the leftist plethora of social programmes found in Iceland, so it's largely because of capital efficiencies , Geothermal electricity production in Iceland's case, a state or nation can eff4ectively finance at low cost, without subsidies, good social programmes, like low cost or even free public health care , not the other way around.)
The reality of "Big Wind" stated capacity factor is turbine vendors selling into Big wind projects routinely claim at least 33% capacity factor. That means a 1MW NP turbine will produce on average if properly sited, throughout the couse of year, 330 kiloWatts power output an hour. The reality is, the ISOs routinley report actual capacity factors between 24% to 28% of most Big Wind Farm developments (it's all public data for instance in Ontario and Alberta in the Canadian Market) and make up the shortfall in production by charging the rate payer to cover the cost of firing up nuclear, coal or gas to cover renewable energy production routine and unplanned (sold a "bill of goods" by the vendor, sited imporperly, poor spacing, dine and dash sales) shortfalls. That vendor claimed capacity factor number is then factored into the price of the equipment and what it takes to operate the equipment, the operating expense to produce the LCOE number most wind farm developers are interested in, which is the Levelized Cost of energy over the life of the project- ie "What's it going to cost me(the wind farm developer) to build, activate, operate and maintain this wind farm?" . And it is at that point the IPP starts negotiating a rate (usually way to high and gouge for profit margin) with the ISO. Nice eh? Not! End the end the Wind Farm Developer get's shafted and the ISO must run more non-renewables, like coal, NG fire electricity generation, each of which is subject to another government tax at the Federal Level as a carbon emitter. Now, just guess who gets to pay for this uplift in power charges? You the rate payer!
Smart Green Projects make sense, but only if you can avoid all of the 13 deadly sins of Dumb Green Energy Projects. This is post os one of series of posts I will be writing to dive deeper into those 13 sins, so show exactly how they work. Most importantly we will provide real live examples of solutions to each.
We will spend more time on this "capacity Factor" point in an upcoimg blog, so be sure to check into the Thunderboltkid channel. by for now..
The Thunderboltkid is signing off.., be safe, be good, do good.., I look forward to your constructive comments, ideas and requests for more information.