nuclear-news

Geographical and Technical Characteristics of Renewable Energy

Our thought experiment starts by focusing on the geographical and technical characteristics of renewable sources and accompanying infrastructures and how they might shape a renewable energy system. Five important observations stand out in this regard:

• First and foremost, the availability of renewable sources of energy, especially that of wind and solar, far outstrips that of fossil fuels and uranium 

• Second, every country has access to at least some form and amount of renewable energy, be it wind, solar, biomass, hydro, or geothermal, thereby all countries could become energy producers.

• Third, because renewable energy can be more efficiently harvested at certain locations than others, some countries can generate energy cheaper than others.

• Fourth, electricity is the energy carrier for most renewables and especially those with the most psotential (solar and wind), influencing the distance over which energy is transported and traded.

• Fifth, a great part of renewable energy production is of an intermittent nature and electricity generation may be distributed in a large number of small units…… Renewable Energy Markets

  The geographical and technical characteristics of renewable energy systems have four major implications for renewable energy based markets.

  First, when every country has the ability to source energy domestically (at least a strategic part), but some countries are able to harvest energy more efficiently, one may assume that there are a) many (potential) producers in the market; b) production shifts to those countries that can do so most efficiently; and that c) most, if not all, countries face a make or buy decision, i.e. need to choose between cheaper electricity imports from regions with more favourable conditions on the one hand and the security of domestic supply on the other. ……

  Second, with electricity as the main energy carrier, energy markets become limited to the size of the grid. The nature of electricity transport implies a tightly integrated infrastructure that physically connects producers and consumers (unlike, for example, oil tankers that traverse open seas). In a renewable energy system without the grid there is little or no energy trade. A few considerations matter in this regard to the size of the grid: a) electricity transport is hindered by the loss of load over large distances; b) the larger the grid, the more energy sources may be included; c) the larger the grid, the more geographical fluctuations in availability of renewable resources can be balanced and exploited; and d) the larger the grid, the more likely that it is vulnerable to disruptions. As a consequence electricity grids tend to span countries and continents, but not the globe. Renewable energy markets are thus expected to exist nationally or regionally. In turn, the geopolitical interdependencies shrink to the size of the grid, even though global markets might exist for the material input and technology necessary to produce electricity from renewable sources.

  Third, renewable electricity harbours the possibility of distributed generation and with it new business models that are different from centrally operated systems. Domestically, countries have to decide whether they prefer centrally or decentrally produced electricity and whether to rely on incumbent energy companies and grid operators or to empower households and local communities with their own production and distribution networks (either connected to the grid or not). If the distributed option is chosen, energy markets become locally oriented, likely to involve a mix of private and communal companies……..

  (Geo)Political Implications

  Considering the general implications discussed above, it becomes clear that a renewables based energy system could take shape in different ways with varying geopolitical implications. The resulting diverging strategic concerns for producer, consumer, and transit countries can be caught best by exploring two extreme scenarios: a centralized Continental and decentralized National scenario………

  The most likely outcome, of course, is a mix of both scenarios. In the National scenario there would still be opportunities for efficiency gains through cross-border trade of energy and storage and balancing capacity. Moreover, in the Continental scenario countries would still want to limit their dependence by investing in domestic generation and storage capacity. It is highly probable that countries will strike a balance between security of supply and efficiency gains. Vital functions of society could be powered by local energy sources, probably including local storage capacity. Less vital functions could rely on intermittent domestic energy production and foreign trade. The question remains, of course, where that balance should lie and in how far a country is able to create the space for such a decision. http://reneweconomy.com.au/2013/how-renewables-will-shift-the-balance-of-power-78579