Colin Dunstan
Saturday, 19th January 2008 Mr Mick Gentleman Member, ACT Legislative Assembly GPO Box 1020 Canberra ACT 2601 Dear Mr Gentleman, ACT Government's Proposed Solar Power Bill I have followed with interest the proposed Solar Power Bill. Previously I have been requested to make some submissions to both the NSW and Federal Governments on their energy policies. A number of opinions I have seen in local media reports might be used to argue against the proposed bill. These might be answered as follows: Adverse Opinion
Response
The high cost of solar photo voltaic panels, and the higher price of electricity they supply will result in lower income households subsidising those wealthier households that can afford to invest in solar panels.
Higher prices of electricity from solar photo voltaic panels will make energysaving measures more attractive. Such measures are much cheaper than solar panels and can be afforded by lower income households. Two examples: 1. Canvas awnings on west-facing windows dramatically cut the operating cost of air conditioners. 2. Gas, solar-thermal and heat pump hot water systems cost significantly less to run than electric hot water systems.
The proposed solar power bill only increases electricity supply. It does nothing to reduce demand or encourage greater energy efficiency.
Not true. See two examples above. In fact, the proposed bill will promote more efficient use of energy, even in the absence of any additional measures specifically aimed at encouraging energy efficient technology.
The generating capacity of the solar photo voltaic panels could be provided at a fraction of the cost by relying on a large-scale coal or gas power station.
The cost of power transmission lines for connecting large-scale power stations to cities is substantial. Distributed power generation, using solar panels for instance, reduces the need for major capital investment in the electricity distribution grid. The CO2 emissions from large-scale power stations have both an environmental cost and an economic cost. Both need to be taken into account.
The generating capacity of the solar photo voltaic panels will have to be backed up by investment in additional capacity in large-scale coal or gas power stations that will only be used on cloudy days.
Not necessarily true. Some further ideas for greater use of distributed power generation below might help. Also, regardless of the investment cost – the environmental and economic costs of CO2 emissions are avoided – for all but cloudy periods.
Below are some additional ideas that might help strengthen the proposed bill, and provide even greater benefits by encouraging distributed power generation generally – not limited to solar photo voltaic panels. Promoting these ideas might be incorporated in the bill at the outset, or alternately, the bill might be structured with a view to adding support for other technologies in response to emerging opportunities: 1. Any household, business or public building that currently uses gas for space or water heating can efficiently produce electricity – with about half the CO2 emissions of an advanced large-scale Combined Cycle Gas Turbine (“CCGT”) power station: a) Coal power stations produce about 1,000 kgs of CO2 per mega watt hour (MWh) of electricity generated. This compares to about 400 kgs of CO2 per MWh for a CCGT (gas) power station. b) It is surprisingly simple to generate electricity on a very small scale with a marginal output of only about 200 kgs of CO2 per MWh. The trick is to make use of co-generation in an unconventional way. Instead of setting out to generate electricity and then trying to find a use for the “waste heat” that is created, it is far more efficient to only produce electricity when you need “useful heat” - say for hot water or space heating. c) For a large-scale CCGT (gas) power station, HALF of the heat produced by the natural gas fuel is wasted! d) Any small natural gas fueled electricity generator can convert at least 20% of the heat energy from natural gas into electricity, leaving 80% of the heat energy to be used exactly as it is at present by existing natural gas users. They will need some economic incentive and regulatory support, to encourage them to replace simple gas burners with small-scale heat-engines, and to purchase 25% more natural gas – ALL of which will be converted into electricity. (The marginal thermal efficiency for the additional natural gas consumed is 100%.) 2
e) Households that currently use electric hot water systems could contribute to the distributed, more efficient and robust power generation system by converting to natural gas hot water with electricity co-generation. f) An upgraded natural gas hot water system with “electricity co-generation” will not always need to be operated at any particular time of the day. (Hot water may be stored for later use.) With appropriate distributed control software, numbers of them could be “instructed” to schedule electricity generation during cloudy periods – providing some backup capacity for solar photo voltaic panels. 2. Hydrogen Fuel Cell technology, with small-scale units to convert natural gas to hydrogen for operating the fuel cells, are another avenue for existing gas consumers to provide “electricity co-generation” - again providing some backup capacity for solar photo voltaic panels. a) Apart from cost considerations, fuel cells should allow co-generation of considerably more electricity than small heat-engines. It is possible that an existing natural gas customer could purchase 100% more natural gas – and convert ALL of this additional energy into electricity. b) Note that in 2003 Honda piloted a “Home Energy Station” that generates hydrogen from natural gas – for use with stationary fuel cells, and for re-fueling Honda's new fuel-cell cars. (I have enclosed a copy of a brochure from Honda's website, for information.) If I can be of any further assistance, or if you wish to discuss any of the matters raised above, I may be contacted by telephone or email: Telephone: Email
Yours sincerely,
[C. Dunstan]
Enclosure:
Brochure: “Honda Worldwide | Fuel Cell > FCX > Hydrogen Station”
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