“Even the mere prospect of new trade restrictions has prompted solar installers, who are already facing supply issues and higher labor costs, to pull back on some projects. At the same time, Biden wants to avoid being seen to be weak on China — another centerpiece of his campaign pitch and early policy agenda.
The conflict pits parts of the solar industry against each other. American solar panel manufacturers are petitioning to expand existing tariffs on Chinese products to those coming from Malaysia, Thailand and Vietnam. Backers of the tariffs and trade restrictions say they would allow panel makers in the U.S. to expand production. Added duties would also accomplish another of Biden’s goals: punishing China over the use of forced labor.
But the Solar Energy Industries Association, which represents developers that install panels and build solar projects, says imposing tariffs on those three nations would hit more than three-fourths of imports and about half of the total solar panel supply in the U.S. “That would have a pretty devastating impact on the solar industry,” said Abby Hopper, CEO of the trade group.”
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“Other trade issues before the administration could also hamper solar build-out. Commerce is weighing whether to extend separate Trump-era tariffs on Chinese solar for another four years, and the Department of Homeland Security is considering whether to increase trade restrictions on Chinese panel components, like it did this summer.
In June, the Biden administration blocked the import of products containing silicon materials from a key Chinese supplier, Hoshine, over concerns it uses forced labor in its manufacturing. The company operates in the northwestern Chinese region of Xinjiang, where the ruling Communist Party has interned hundreds of thousands of ethnic Uyghur Muslims.
The policy has resulted in Customs and Border Protection detaining some shipments of solar panels coming in from China.”
“In the near future, the energy made in the US is going to be much greener. The country’s current goal is for solar plants alone to make nearly half of US electricity by 2050. But we can’t just build solar plants where coal and gas plants used to be. They have to be built where it’s … sunny. And wind turbines have to be built where it’s windy. But that’s not always where the people who need the power are.
The distance from energy source to energy need is about to get a lot bigger. And the US is going to need more high-voltage transmission lines. A lot more. As soon as possible. While solar plants can be built relatively fast, high-voltage transmission projects can take up to 10 years. So experts say we need to start proactively building them, right now.”
“Here’s a multibillion-dollar question that could help determine the fate of the global climate: If a tree falls in a forest—and then it’s driven to a mill, where it’s chopped and chipped and compressed into wood pellets, which are then driven to a port and shipped across the ocean to be burned for electricity in European power plants—does it warm the planet?
Most scientists and environmentalists say yes: By definition, clear-cutting trees and combusting their carbon emits greenhouse gases that heat up the earth. But policymakers in the U.S. Congress and governments around the world have declared that no, burning wood for power isn’t a climate threat—it’s actually a green climate solution. In Europe, “biomass power,” as it’s technically called, is now counted and subsidized as zero-emissions renewable energy. As a result, European utilities now import tons of wood from U.S. forests every year—and Europe’s supposedly eco-friendly economy now generates more energy from burning wood than from wind and solar combined.”
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“Nevertheless, the global transition away from fossil fuels has sparked a boom in the U.S. wood-pellet industry, which has built 23 mills throughout the South over the past decade, and is relentlessly trying to brand itself as a 21st-century green energy business. Its basic argument is that the carbon released while trees are burning shouldn’t count because it’s eventually offset by the carbon absorbed while other trees are growing. That is also currently the official position of the U.S. government, along with many other governments around the world.”
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“critics of the industry have suggested an alternative climate strategy: Let trees grow and absorb carbon, then don’t burn them. Deforestation is a major driver of climate change, and the United Nations climate panel has warned that the world needs to end it worldwide to meet the ambitious Paris emissions targets for 2050.”
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“European experience shows that general policies to promote renewables can spark a massive shift to wood-burning if biomass isn’t specifically excluded.”
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“Enviva’s product would not exist without loggers who clear-cut forests into barren fields with motorized “feller-bunchers,” but the company tries to emphasize that its business is about growing trees as well as killing trees. Enviva requires the landowners who supply its wood to promise to replant their forests, and it uses GPS technology to track and trace every harvest to see if they comply. The company has also committed to help protect 35,000 acres of threatened bottomland hardwood forests and restore 5,000 acres of natural longleaf pine.”
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“Jenkins wants the public to see the big picture: Southern forests are growing overall, with more trees being planted than cut, and Enviva’s demand for wood helps encourage landowners to keep their forests as forests. The Southeastern U.S. produces one-sixth of the world’s timber, and less than 4 percent of that harvest ends up as pellets.
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“one thing both sides agree on is that it matters what kind of wood ends up in the pellet mills, and what would have happened to that wood otherwise. Policymakers and academics have made all kinds of theoretical assumptions, but it’s not hard to find the reality on the ground.”
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“In the decade since Enviva started manufacturing pellets, the Dogwood Alliance has repeatedly exposed gaps between the company’s sustainability rhetoric and its actions. In 2018, for example, a Dutch TV station working with Dogwood followed some logs from another cypress swamp near the Virginia border back to Enviva’s mill. Smith and I returned to the scene three years later, and while the deforested high ground around the swamp had been recolonized by a thick tangle of grasses, bushes and scrub oak, there wasn’t much growing back in the low-lying wetlands, just some sad-looking stumps poking out of the murky water. Smith warns that if governments keep subsidizing the conversion of trees into energy, enormous swaths of environmentally valuable forests around the world will end up looking like that.
Enviva officials say they no longer accept any cypress wood at their mills, or for that matter any other wood harvested from ecologically sensitive areas. They say they now source only 3 percent of their wood from the increasingly rare bottomland hardwood forests that are such culturally resonant symbols of the South—and only from “non-sensitive” ones. But Jenkins admits the company made some questionable sourcing decisions in the past.”
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“what’s clear from talking to people in North Carolina, and from a few hours standing outside two Enviva mills watching logging trucks come and go, is that much of the wood that gets pelletized isn’t unmerchantable waste wood. It’s pulpwood—whole pine and hardwood trees as well as wood chips that could otherwise be sold to paper mills. It’s not thick or unblemished enough to turn into telephone poles, houses or high-quality furniture, but much of it is fine for Amazon boxes, toilet paper and the fluff inside diapers; one member of Enviva’s sustainability team described it as Walmart wood rather than Gucci wood. I later spent an hour outside a nearby paper mill watching what kind of wood arrived there, and the trucks were bringing in the same kind of logs they brought to Enviva.
That means Enviva isn’t just cleaning up around the edges of the logging industry—it’s increasing demand for wood in the South. And that means additional trees would need to be logged to feed the paper mills that are losing trees to Enviva; the increased demand for pulpwood will require an increased supply of pulpwood. Even if new trees are planted in their place, many studies suggest they will take decades, and in some cases centuries, to absorb enough carbon to “pay back” the carbon debt from burning the older trees. That’s a problem, because scientists don’t believe the world can wait decades, much less centuries, to cut emissions.”
“Over the past three decades, 30 states — red and blue alike — have passed laws requiring electric utilities to use more clean energy. Since 2015, 10 states have adopted 100 percent clean electricity standards, requiring the transition to fully 100 percent carbon-free power. And six more have committed to that goal. State laws are popping up so fast, it’s hard to keep track. Across the country, 170 cities have policies to get to 100 percent clean. As a result, more than one in three Americans already live in a place that’s committed to reaching 100 percent clean power.
We know this approach is technologically possible. Wind, solar, batteries, transmission lines, and other technologies can replace dirty fossil fuels. Google, one of the largest electricity consumers in the country, is aiming for 100 percent clean power, real-time at all its facilities by 2030.
With all this state and local leadership, it’s not surprising that this approach is popular with the public. In independent polls from both Data for Progress and the Yale Program on Climate Change Communication, run over the past few months, more than two-thirds of voters support the federal government moving the country to 100 percent clean power by 2035.
And once we implement this policy nationally, it should stay popular because clean energy saves customers money.”
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“Many utilities continue to operate old, uneconomic coal plants. In just three years, these plants cost customers an additional $3.5 billion to keep open — and that’s before we add in all the extra hospital bills for folks breathing in their pollution day after day. Or the cost of destabilizing our climate. Replacing these dirty plants with clean power is not only good for our health; it’s also good for our wallets.”
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“In our research for our report, we spent months talking with congressional offices, parliamentary experts, think tanks, climate advocates, and others, and have concluded that it is possible to pass a CES through the budget reconciliation process. In our report, we identify several ways a CES can fit with the Byrd Rule.”
“A prominent takeaway is the massive amount of land it would take to reimagine energy production and distribution nationally, including figuring out where to site a multitude of new solar arrays and wind turbines and constructing thousands of miles of transmission lines. “The current power grid took 150 years to build,” one of the study researchers said. “Now, to get to net-zero emissions by 2050, we have to build that amount of transmission again in the next 15 years and then build that much more again in the 15 years after that. It’s a huge amount of change.””
“To a first approximation, the question of whether renewables will be able to get to 100 percent reduces to the question of whether storage will get cheap enough. With cheap-enough storage, we can add a ton of it to the grid and absorb just about any fluctuations.
But how cheap is cheap enough?
That question is the subject of a fascinating recent bit of research out of an MIT lab run by researcher Jessika Trancik (I’ve written about Trancik’s work before), just released in the journal Joule.
To spoil the ending: The answer is $20 per kilowatt hour in energy capacity costs. That’s how cheap storage would have to get for renewables to get to 100 percent. That’s around a 90 percent drop from today’s costs. While that is entirely within the realm of the possible, there is wide disagreement over when it might happen; few expect it by 2030.”
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“It’s important to test renewable energy over longer time spans. In addition to daily and weekly fluctuations in solar and wind, there can be yearly or even multi-year fluctuations. And indeed, by looking back over 20 years, the team found several rare events in which wind and solar were both unusually low for an unusually long time. These rare events represent a spike in the amount of storage needed. Planning for them substantially increases the cost of a pure-renewables system.”
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“these researchers set an extremely high bar: a system with all-renewable energy, with flexibility handled entirely by storage, adequate to meet demand at every hour of every day for 20 years.
Soften any of these restraints even a little and the cost target that storage must meet rises to something far more tractable.
First and most notably, loosen the amount of time that the system must meet demand and things get much easier for storage. And a 100 percent EAF is a little crazy anyway; the existing power system is not up and available 100 percent of the time. There are brownouts and blackouts, after all. No power system is 100 percent reliable.
Trancik’s team found that if the EAF target is lowered from 100 to 95 percent, the cost target that storage must hit rises to $150/kWh. (More specifically, lowering the EAF reduced the total cost of energy storage by 25 percent for the first tier of storage technologies and 48 percent for the second tier.) That’s a much more tractable number, within reach of existing technologies.
Why does lowering the EAF so little ease the pressure on storage so much? The explanation is in those rare meteorological events of extended low wind and sun. They don’t happen often over a 20-year span, but building enough storage to deal with them when they do happen makes the last few percent of EAF exponentially more expensive. To lower the EAF to 95 percent is to say, “something else can handle those rare events.””
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“the team is modeling a system in which storage is doing almost all the flexibility work. In fact, there are other sources of grid flexibility. My favorite candidate for flexibility dark horse is “load flexibility,” demand-side programs that can shift energy consumption around in time. Another source of flexibility is enhanced long-distance transmission, to carry renewable energy from regions that produce it to regions that need it. Another is dispatchable renewables like run-of-the-river hydro and advanced geothermal.
All of those sources of flexibility will grow and help to smooth out renewables. Storage won’t have to do all the work on its own. That, too, should ease the price pressure.”
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“a renewables+storage system also gets easier if renewables get cheaper. The numbers that Trancik’s team use for renewables are quite conservative. (For instance, $1/Watt solar costs are already being beat routinely in the US.) If renewable energy continues to defy expectations and plunge in cost, it would become cheaper and easier to oversize renewables and curtail the excess energy. That in turn would ease pressure on storage.”
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“the headline $20/kWh cost target for energy storage is almost certainly more stringent than what will be required in the real world. Even the $150/kWh target required for an EAF of 95 percent is likely too stringent. In the real world, storage will be assisted by other forms of grid flexibility like long-distance transmission, load flexibility, and microgrids, along with regulatory and legislative reforms. And renewables will probably continue to get cheaper faster than anyone predicts.
So let’s call the target $150-$200, or thereabouts. Can storage hit that?”
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“There are two key characteristics of a storage technology: power capacity and energy capacity. Roughly speaking, power capacity refers to how fast you can get energy out of it, measured in kW; energy capacity refers to how much energy you can store in it, measured in kWh. Each is priced separately, power capacity costs and energy capacity costs. The latter is the number we’ve been using for targets”
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“It expects, by 2030, “a drop in the total installed cost for Li-ion batteries for stationary applications to between USD 145 per kilowatt-hour (kWh) and USD 480/kWh, depending on battery chemistry.” Hey, $145 is well within our target range!
Nonetheless, lithium-ion batteries are limited. Researchers generally treat the raw materials costs of a storage technology as the lower possible bound of its total costs. Manufacturing and transportation costs can be lowered with scale, but materials costs are stubborn, and the materials involved in Li-ion batteries alone are costly enough that they will likely never hit $20/kWh. In the $150 range, though — that’s doable.”
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“How about flow batteries? “The two main flow battery technologies — vanadium redox flow and zinc bromine flow — had total installation costs in 2016 of between USD 315 and USD 1,680/kWh,” IRENA reports. “By 2030, the cost is expected to come down to between USD 108 and USD 576/kWh.” Yes, $108 is well within our target range. (Note that there are flow battery companies already claiming to beat that.)
High-temperature sodium sulphur (NaS) and sodium nickel chloride batteries have been around for a while, but they are also expected to get much cheaper. “Cost reductions of up to 75% could be achieved by 2030, with NaS battery installation cost decreasing to between USD 120 and USD 330/kWh,” says IRENA. “In parallel, the energy installation cost of the sodium nickel chloride high-temperature battery could fall from the current USD 315 to USD 490/kWh to between USD 130 and USD 200/kWh by 2030.” Again, at the lower end, well within our target range.
CAES costs are extremely site-specific, as they depend on a reservoir in which to pump the air. “The typical installation cost is estimated to be approximately USD 50/kWh,” says IRENA, “possibly dropping to USD 40/kWh if an existing reservoir is available.”
Then there are thermal-storage options, like the increasingly popular option of storing electricity as heat in molten salt, with claims of energy capacity costs as low as $50/kWh.”
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“Storage is rapidly evolving, diversifying, and falling in cost, to the point that wind and solar power plants coupled with storage are beginning to compete directly with fossil fuel power plants on cost. That’s only going to accelerate as both renewables and storage get cheaper. Providing all of US power, all day every day, will require oversizing renewables and installing an enormous amount of storage, but if they get cheap enough, that’s what we’ll do.
To put that more plainly: A US energy grid run entirely on renewable energy (at least 95 percent of the time), leaning primarily on energy storage to provide grid flexibility, may be more realistic, and closer to hand, than conventional wisdom has it.”
“The Ohio case, while extreme, is not an aberration. Corrupt electric utilities using ratepayer funds to roll back climate policy is not limited to Ohio. As I described in Short Circuiting Policy, it is an unfortunately common pattern.
Last week, the Illinois utility ComEd — whose parent company is Exelon — admitted to engaging in bribery and agreed to pay a $200 million fine. It’s very likely that another speaker, Michael Madigan, is involved in that case — the Illinois governor has already called on him to resign.
In Arizona, which I examine in my book, the FBI similarly launched an investigation into an elected official over its ties to a private electric utility, Arizona Public Service. As we now know, Arizona Corporation Commission Chair Gary Pierce met privately with then-Arizona Public Service CEO Don Brandt numerous times. The utility also funneled over $700,000 through a dark money group to Pierce’s son’s failed bid for secretary of state.
Arizona Public Service also secretly spent tens of millions on campaigns to elect its own regulators in order to secure favorable decisions, including clean energy rollbacks and generous rate hikes. In 2018 alone, it spent upward of $40 million to successfully block a clean energy ballot initiative. The new CEO, Jeff Guldner, played a key role in directing the utility’s dark political spending.
And this isn’t a new strategy. Throughout the 1990s, electric utilities including FirstEnergy and Arizona Public Service were key funders of climate denial.”
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“The dogged folks at the Energy and Policy Institute — a utility watchdog that has turned up real-time facts in most of these cases — paint a clear picture for those paying attention: Most electric utilities are resisting the clean energy transition and using corruption to do it.”
“Energy analysts, however, caution that Sanders’s 2030 plan would require a federal infrastructure investment not seen since the construction of the interstate highway system. To get close to Sanders’ 100 percent clean energy goal by 2030, researchers estimate the U.S. would need to add about 800 GW of wind and solar resources — about 25 times the amount the federal government expects to be built this year — along with ample amounts of battery storage and transmission. The Sanders camp forecasts that would cost about $2 trillion.
“Our best year for solar and wind — we’d have to multiply that by three and then sustain it for the next decade,” said Sonia Aggarwal, vice president at the analysis firm Energy Innovation, which advises world governments on their climate targets.
While turning the power grid over to 100 percent renewables presents significant technical difficulties, the clean energy deployment is “not out of the question,” Aggarwal said. However, Sanders’ plan to shut down nuclear power plants will make it “much more difficult.” The nation’s 60 nuclear plants generated more than half of U.S. carbon-free energy last year, but the Sanders campaign says it will phase them out by denying extensions of their operating licenses when they expire.
Many of those nuclear plants have licenses that expire after 2030, but Sanders expects the cheaper solar and wind power to drive most them into retirement. The stability those reactors provide to the power grid would be hard to replace with the variable output of the renewables, said Leah Stokes, assistant professor of political science at the University of California Santa Barbara.”
“Federal regulators are now actively working to counteract the effects of state-level clean energy policy, despite opposition from virtually everyone except the fossil fuel generators that directly stand to benefit. And by doing so, they will crank up costs on 65 million consumers (as a start).”