Japan, Weighing a Nuclear-Free Power Grid, Finds Cost Daunting

The following is an excerpt from an article in 

The New York Times
Thursday, August 30, 2012

Japan, Weighing a Nuclear-Free Power Grid, Finds Cost Daunting

By HIROKO TABUCHI

TOKYO — As Japan moves to cut back on nuclear power after last year’s disaster in Fukushima, it is running into a harsh economic reality: the cost of immediately abandoning its nuclear reactors may be too high for some big utilities to shoulder.

If the country’s 50 nuclear reactors were permanently closed this year, power companies would be hit with losses totaling 4.4 trillion yen ($55.9 billion), rendering at least four of them insolvent, according to calculations this summer by the government’s Agency for Natural Resources and Energy.

The extraordinary costs of an immediate shutdown have emerged as a major concern for the Japanese government, which has struggled to balance the desire for improved nuclear safety with the bottom-line realities of the big utilities. Nuclear plants generated about one-third of Japan’s electricity before the Fukushima accident, but most remain at least temporarily offline.

“People talk easily about shutting down Japan’s nuclear power plants, but the economic and financial consequences are severe,” said Reiji Takeishi, professor in environmental economics at Tokyo International University.

The government is now considering at least three options to reduce the country’s dependence on nuclear power — and all of them would give the power companies until 2030 to shut their reactors permanently, allowing them to largely recoup their plant investments. By 2030 the majority of reactors would be older than 40 years and would face decommissioning anyway under Japanese guidelines.

But a series of fresh safety concerns, including possibly active fault lines beneath nuclear sites, have raised doubts about whether the nuclear reactors should be restarted at all. And the proposed 18-year timetable has angered the country’s growing antinuclear movement, which complained that the government had its priorities wrong.

“How can you put the economy above safety, above human life?” Masanori Oda, a contemporary artist and a representative of the movement, said after a meeting with Prime Minister Yoshihiko Noda last week.

For more, visit www.nytimes.com.

IBM and Hydro One Team to Improve the Power Grid in Ontario

Smarter technologies to be tested on Hydro One's distribution power grid

Tab navigation

• News release
• Related XML feeds

• Contact(s) information

ARMONK, N.Y. and TORONTO - 27 Mar 2012: IBM (NYSE: IBM) and its Business Partner Telvent announced that they have been selected by Hydro One, the largest distributor of electricity in Ontario (Canada), for a new smart grid project that will help transform the province's electrical system. Together, the companies will run simulations and tests to determine the smart grid technologies that have the potential to improve power efficiency and reliability.

Installed in the 1950s, many components of Ontario's current electricity distribution system have reached the end of their service life. More recently, technological advancements, provincial governmental policy, market forces and increased environmental awareness have added pressure to the demands on Ontario's electricity distribution system.

"As equipment on our distribution system ages, it needs to be replaced. This creates an opportunity to create a world-class network with new, intelligent and sophisticated technologies to meet the changing needs of our customers," Rick Stevens, Vice President, Asset Management, Hydro One. "Our collaboration with IBM and Telvent will help Hydro One assess the next generation of distribution equipment and make the right choices for our customers looking for more reliable electricity, particularly in rural areas."

The Advanced Distribution System (ADS) project will help the utility identify and assess equipment, test new delivery models for electricity, validate the costs and benefits anticipated with a new smart grid and recommend changes to cost effectively modernize Ontario's distribution system.

The project intends to enable an increased amount of Distributed Generation into the grid as well as help increase the reliability of the current distribution system and improve outage management during large scale situations. By taking advantage of the insights gained from new data sources based on analytics, Hydro One will be able to optimize energy utilization and management for greater efficiency while accommodating consumer demand.

"Utilities around the world are investigating new smart grid technologies to help solve complex challenges caused by an aging infrastructure and increasing demand," said Guido Bartels, General Manager of IBM's Energy & Utilities Industry and Chairman of the Global Smart Grid Federation. "Together with Hydro One, we are paving the way for transformation by testing new sophisticated monitoring and control technologies that will enable the integration of renewable energy in the distribution grid while improving its reliability and responsiveness, and ensuring customer satisfaction. This will prepare Hydro One and the province of Ontario for further growth and deliver more affordable and reliable renewable energy for Ontarians."

As the overall system integrator, IBM will provide expertise in smart grid technologies, planning and implementation to oversee the reliability of the network solution. Hydro One will use the Advanced Distribution Management System (ADMS), from Telvent, a real-time solution that will provide complete functionality for planning, operation and analysis of its distribution system. This will allow Hydro One to more accurately manage and plan their grid investments.

According to Telvent's Chairman and CEO, Ignacio Gonzalez, "In addition to the ADMS solution, Hydro One will benefit from the strategic collaboration between Telvent and IBM. Over the years, we have provided solutions to several large utilities to help make mid-project technology adjustments while increasing the speed of the solution development."

The project is in line with the requirements of Ontario's Green Energy and Green Economy 2009 Act ("GEGEA"), which fosters the growth of renewable and cleaner sources of energy while promoting a greener economy.

About Hydro One Hydro One provides services to 1.2 million residents of Ontario with the vast majority of its rural customers in low-density areas. Hydro One is the largest distributor of electricity with about 120,000 km of distribution lines over a rural service territory of about 640,000 square kilometers covering 75% of the province.

About IBM

IBM is involved in more than 150 smart grid engagements around the world, in both mature and emerging markets. IBM is the founding member of the Global Intelligent Utility Network Coalition, a unique collaboration of utilities from around the globe who are working to accelerate the use of smart grid technologies and move the industry forward through its most challenging transformation. More about IBM's vision to bring a new level of intelligence to how the world works—how every person, business, organization, government, natural system, and man-made system interacts, can be found here: http://www.ibm.com/smarterplanet. 

For more information about Smarter Energy at IBM, please visit:www.ibm.com/press/smarterenergy. Follow us on Twitter and LinkedIn.

Energy Innovation Hubs

News release from the U.S. Dept. of Energy:

Energy Department to Launch New Energy Innovation Hub Focused on Advanced Batteries and Energy Storage

February 7, 2012

Washington, D.C. – U.S. Secretary of Energy Steven Chu announced today plans to launch a new Energy Innovation Hub for advanced research on batteries and energy storage with an investment of up to $120 million over five years. The hub, which will be funded at up to $20 million in fiscal year 2012, will focus on accelerating research and development of electrochemical energy storage for transportation and the electric grid.  The interdisciplinary research and development through the new Energy Innovation Hub will help advance cutting-edge energy storage and battery technologies that can be used to improve the reliability and the efficiency of the electrical grid, to better integrate clean, renewable energy technologies as part of the electrical system, and for use in electric and hybrid vehicles that will reduce the nation’s dependence on foreign oil.

“As part of the Obama Administration’s investments in science and innovation, this Energy Innovation Hub will bring together scientists, engineers, and industry to develop fresh concepts and new approaches that will ensure America is at the leading-edge of the growing global market for battery technology,” said Secretary Chu.  “With the advances from this research and development effort, we will be able to design and produce batteries here in America that last longer, go farther, and cost less than today’s technologies.”

Energy Innovation Hubs are designed to bring together teams of scientists and engineers across intellectual disciplines to rapidly accelerate scientific discoveries and shorten the path from laboratory innovation to technological development and commercial deployment of critical energy technologies. The hubs are part of the Obama Administration’s broad-based clean energy research strategy aimed at harnessing American innovation to achieve needed breakthroughs in important energy technologies to grow the clean energy economy and generate new clean energy jobs.

The goal of the Batteries and Energy Storage Hub will be to deliver research leading to revolutionary new technologies.  While advancing the current understanding and underlying science around energy storage, the role of the new hub will be to develop radically new scientific approaches, including the exploration of new materials, devices, systems and novel approaches for transportation and utility-scale storage. The hub should foster new energy storage designs and develop working, scalable prototype devices that demonstrate radically new approaches for electrochemical storage, overcoming current manufacturing limitations through innovation to reduce complexity and cost. The ultimate goal will be to surpass the current technical limits for electrochemical energy storage and reduce the risk level enough for industry to further develop the innovations discovered by the hub and deploy these new technologies into the marketplace.

Letters of Intent to apply are due on March 1, 2012 with full applications due on May 31, 2012.  Universities, national laboratories, nonprofit organizations, and private firms are eligible to compete and are encouraged to form partnerships when submitting their proposals.  The award selection is expected this summer.  The full Funding Opportunity Announcement (FOA) is available HERE.

This will be the fourth such hub established by the Department since 2010.  Other hubs include the Joint Center for Artificial Photosynthesis, which focuses on advanced research to develop fuels directly from sunlight; the Consortium for Advanced Simulation of Light Water Reactors, which is seeking to improve nuclear reactors through sophisticated computer-based modeling and simulation; and the Greater Philadelphia Innovation Cluster for Energy-Efficient Buildings, which is working to achieve major breakthroughs in energy efficient building design.  Information on the existing hubs can be found on the Energy Innovation Hubs website: http://energy.gov/hubs.

Building Storehouses for the Sun's Energy, for Use After Dark

The following was gleaned from a January 3 New York Times article with the above title.

Building Storehouses for the Sun’s Energy, for Use After Dark

The solar power industry must overcome a major stumbling block: finding a way to store it for use when the sun isn’t shining.

Solar thermal power makes electricity by using the sun’s heat to boil water. The water can be used to heat salt that stores the energy until later, when the sun is no longer shining.

The U.S. Energy Department recently gave a $737 million loan guarantee to a solar thermal company for a plant that will generate 110 megawatts at peak and store enough heat to run for eight to 10 hours when the sun is not shining.

One advantage of adding storage capacity has to do with the equipment that makes electricity being the most expensive part of a solar thermal system.  If it is connected to storage technology, it can run almost twice as many hours as a plant without storage. That means the unit cost of electricity drops.

Another has to do with the arcane economics of electricity. A utility must assure a supply of electricity in two forms: energy and capacity. The difference has never meant much to most consumers, who directly pay only for energy, as measured in kilowatt-hours.

But capacity, the dependable ability to produce power, is becoming more important as renewable energy forms a larger and larger part of the grid.

Wind and sun provide a lot of energy but not much capacity. Today, backup capacity for wind and solar power comes in the form of expensive gas-fired generators, which sit idle most of the year but operate when the wind stops blowing or the sun stops shining.

Storage could cut costs by 4 cents a kilowatt-hour, Mr. Denholm calculates — a considerable benefit for a commodity that retails for an average of 11 cents. A big part of the savings is not having to build the gas-fired generators for backup.