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WTI $73.9 bbl
Brent $78.5 /bbl
NL TTF gas €137/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

Regulatory proxy for fossils fights domestic solar, again

UK gets tightish, relaxes

Germany also

... but not France

China feasts

Lawfare

Dual fuel loco

Tunneling Alps
 
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Explanation : I was recently asked by a school to write a suitable set of practice interview questions regarding energy for a 18-year old in Germany wanting to study a first degree in engineering at a good university. (I used to do these sort of interviews for various things). Below is what I put together for the school to use in their practices. Hopefully it may be of interest to others.

-------------------------------------------------------------------
Interview question

Comment – this is structured so as to ensure that specific understandings are in place for each successive question with any information in the suggested answer brought out in conversation. However the aim should be to allow a conversation to flow albeit in a managed manner. It is deliberate that some calculations are required as sometimes interviewers for these courses will want candidates to demonstrate their ability to perform estimates, understand units, etc – pencil and paper should be allowed (or even a calculator). It is expected that the interviewer will want to relate the questions to the candidate’s home-country of Germany.



Q1. Germany is progressively phasing out its nuclear and coal-fuelled electricity generation and has stated that it intends to move towards only using renewable energy in the future, i.e. for the time being these are political decisions that have been determined/settled. Assuming that hydro power potential in Germany has mostly been already developed, what two other renewable energy sources might make up the majority of the required electricity in the future.

A. Wind and solar (photovoltaic) energy are likely to be dominant. Other options exist but are much smaller in scale (e.g. biogas, biomass, geothermal, ocean wave/currents, solar thermal, etc).



Q2. How do we capture solar PV and wind energy to generate electricity ? What are the main features of wind and solar energy that might concern an engineer studying a country such as Germany’s energy requirements? To what extent are they similar or different ?

A. Both generate electricity that originates in the sun, one directly via solar radiation exciting silicon semiconductors to set up a voltage and induce electron flow; and the other by solar radiation creating wind circulation patterns that are harvested aerodynamically by rotating wind turbines with mechanically-linked electrical generators. Both are intermittent but forecastable over differing timescales – for example we very accurately know when the sun rises and sets, and how many hours of solar radiation of what average intensity will fall on the earth at what angle, but we don’t necessarily know how much cloud cover will occur until shortly before. Similarly we know that winter tends to be windier than the summer, but we cannot forecast too far in advance what will be the exact amount of wind at a given location. In the case of Germany we can say that generally solar energy is more prevalent in the Summer and that wind energy is more prevalent in the Winter. The cost of these will be a big concern, as will be the ability to design, manufacture, install and operate them.



Q3. Germany had approximately 210 GW (210 x 10^9) of total installed electrical generating capacity including nuclear, hydro, fossil-fuel, wind and solar. In 2021 Germany consumed 512 TWh (512 x 10^12) of electrical energy in total. What therefore was the average annual utilisation of the generating capacity (this is also termed ‘capacity factor’). Does this capacity factor seem high or low to you ? Why might this be ?

A.

Energy = Power x Time

210 GW x 365d x 24h = 210 GW x (8760 h/yr) = 1,839,600 GWh/yr = approx. 1,840 TWh

Capacity factor = 512 / 1840 = 28%

Most students will be surprised that the real-world capacity factor is so low. In fact typical annual average maximum capacity factors for fossil-fuel generation are often ~40%, for solar are ~11%, for onshore wind are ~30% and for offshore wind ~40% and nuclear ~80%. Therefore a blended capacity factor of 28% is not unusual for a country. Good explanations will include that the total system capacity must be great enough to deliver the peak consumption (even allowing for some equipment unreliability or unavailability) and so a lot of the system will be under-utilised almost all of the time. During periods when equipment is not in use it might be in maintenance, or on standby, operating at partial output, or awaiting its intermittent energy source such as wind or solar.



Q4. We note that in the case of Germany we can say that generally solar energy is more prevalent in the Summer and that wind energy is more prevalent in the Winter. Nonetheless if Germany is to transform its electrical supply to renewables there will be periods when the wind is not blowing and the sun is not shining, but it will still be necessary to deliver electrical energy to the population for domestic, commercial, and industrial use. How might periods of intermittency such as this be managed in a fully renewable manner if there is insufficient hydropower to meet the need, and what are some implications of this ?

A. A part of the answer is to minimise use during periods of intermittency, either via enforced curtailment (rationing) or market-driven behavioural changes, primarily through the mechanism of dynamic real-time energy pricing. This is one motivation for the development of so-called “smart grids”. It is generally expected that imposition of overly high energy prices on consumers in even a very transparent manner will be politically undesirable, and so whilst demand management may be a part of the solution it is thought to be better to find ways of storing energy for release during periods of intermittency.

Energy storage proposals include various forms of battery; compressed gases; flywheels; raised masses; and the generation of ‘green’ chemical fuels such as hydrogen that can be converted to electricity through combustion or fuel cell processes. These all seem very expensive and difficult to scale to meet the challenge. That is why this is one of the biggest engineering challenges of our time.



Q5. If there are 83-million people in Germany what is a) the installed generating capacity per person; b) the average annual electricity consumption per person; c) the average generating capacity utilised per person. Does this seem high or low to you ? Approximately how might the consumption be spread amongst sectors such as (say) industry, households, commercial trade & services, and transport ?

A.

a) 210 GW / 83-million = 2.5kW per person installed capacity

b) 512 TWh / 83-million = 6,169 kWh per person per year total consumption

c) 2.5 kW x 28% = 0.7 kW average power utilisation rate during year per person

It often surprises students to relate the very large numbers for a country back to what it means for an individual person. In fact these are very typical numbers for an advanced European economy, i.e. less wasteful than (say) the US usage of power, but much more than in many less developed nations.

As a generalisation European economies electricity use tend to be nearly one third split between industry, household, and commerce with a tiny fraction for transport. In Germany the division is currently approximately 2% transport, 30% commerce, 26% household, and 42% industry.





Q6. The average German household size is 2 people. Many people are suggesting that households should install a household solar PV system of (say) 4kW size and a battery system of (say) 10kWh to help the electrical grid manage the transformation and assist with intermittency. What can you say about this ?

A.

A typical German person consumes 26% x 6,169 kWh per year in their household, so 1,604 kWh of electricity. Therefore the average 2-person household will consume 3,208 kWh of electricity per year in the home.

Using the previously given capacity factor of 11% the suggested 4kW solar PV system would generate 4 kW x (365 days x 24 hrs/day) x 11% CF = 3,854 kWh/year.

The suggested household solar system would be an approximate match for a typical household’s consumption. It is likely that a domestic house would not achieve the general 11% capacity factor as the siting will be less than the ideal given the constraints of most houses. Many people will not be able to install such a system on their house, either due to physical house limitations or their own financial circumstances.

However the system would tend to produce quite a lot more than the house needs in the Summer when the house’s electrical energy needs are low, and almost nothing in the Winter when the house’s electrical energy needs are highest.

On an average day the household would use 3,208 kWh / 365 days/year = 8.8 kWh per day.

Therefore the proposed 10 kWh battery is an approximate match for the household’s average daily use, allowing the householders to store up solar generation during the sunnier hours of the day and to consume it in the dark hours of the evening or the early morning. So we can see that the suggested battery size is fairly sensible at an average level, however we also know that the sun’s strength and the daylight hours vary through the year. Just as the solar generation is most when least needed, so too would this battery not be able to store sufficient power for more than about one day.

Therefore the battery in this proposal may help the national electricity grid for short-term intermittency but will not help much with longer term intermittencies or for interseasonal storage.





Q7. So far we have been discussing Germany’s electrical energy needs, which were 512 TWh per year. However Germany’s total energy consumption is approximately 3,512 TWh per year, for electricity, transport and heat. In other words approximately 3,000 TWh per year of energy is not converted into electricity but is instead consumed as vehicle fuel, or for heating, cooling and in industrial processes (note : we are slightly simplifying here to make the conversation easier to follow). In energy terms the balance is approximately equally divided between gas, oil, and coal. Overall Germany is now (2021) obtaining 75.6% of its primary energy from fossil fuels, and the remainder from a combination of nuclear and renewable sources. How big a solar PV system would be needed to fully balance an average person’s total share of the German energy need. A 400W solar panel is approximately 2m2. The land area of Germany is 357,588 km2. Does this answer seem a reasonable way to approach the problem, and if not what might be a better way.

A.

3,512 TWh / yr / 83-million = 42,313 kWh per year per person of primary energy

And we know that a 4kW PV system produces 3,854 kWh/yr, so 963 kWh per year per kW

So 42,313 / 963 = 44 kW of PV system

Also,

The mooted individual person’s solar system’s land-take would be:

(1/0.4) x 2m2 = 2.5m2 per kW

44 kW x 2.5m2 = 110 m2

The land area per person in Germany is 357,588 / 18-million = 0.02 km2 = 20,000 m2

So this represents (110/20,000) = 0.55% of the land area per person in Germany

This seems a plausible amount of solar to fully satisfy the energy needs of one German for a year, and certainly seems of a physical scale that could physically be fitted into the country without causing undue hardship. However it does not seem to be the best way to do it, if only because there is no sunlight in the depths of winter. A more likely solution will be some mix of wind power, solar power, and energy storage.



Q8. What information might you need to know to better calculate the best mixture of wind, solar, and energy storage using currently available technology ? How might you perform the calculation ?

A. Assuming for now that “best” means “cheapest” the key pieces of information will be around the actual reasonably expected weather during typical years; the variability of this weather; and the unit costs of the various technologies. One could then construct a computer model for varying amounts of each and try to find the lowest cost solution for Germany. The more information that is known about the weather patterns, at different timescales, the more the computer model could be investigated to understand the robustness of the different mixes to variation in current weather. If the definition of “best” took into account a wider range of factors such as land-take, cash-flow, job opportunities, etc then a range of interesting solutions might be the outcome for further study.

(Note : one can discuss this at great length, but the above would be a realistic answer for a typical viable 18-year old candidate)



Q9. Future developments of new technologies or improvements to existing technology may arise, so perhaps there is value in delaying Germany’s transition to a non-fossil energy system. Equally it is suggested that the effects of climate change may cause future weather systems to be more extreme, so early action to decarbonise is sensible. How might you balance these and similar factors.

A. These are a mixture of philosophical, engineering, economic, political, and earth-sciences questions. As engineers there is a moral obligation to find our best pathway through them, but we can only do so as part of a team effort within our society. One could suggest a formal financial economic model to balance both positive and negative factors in value-of-delay with value-of-acceleration but even then the question would be whether it should be constrained to just Germany or also take into account other factors such as the scale of deployment of technologies around the world (as these greatly determine progress along technology improvement curves). An alternative approach is to just let the market decide, but this is only reasonable if there is a not evidence of market failure, and many people would cite the very slow progress on global climate change as being the evidence that there is market failure. Many studies take the view that quantification of the risks of delay are so large that one cannot reasonably slow down, and that in any case the positive value of transitioning to renewable energy also provides sufficient intrinsic justification to not delay.

(Note : one can discuss this at great length, but the above would be a realistic answer for a typical viable 18-year old candidate)



Q10. How do you as a young engineering student hope to contribute to solving these challenges, and the other great challenges that exist. Do you still want to study engineering?

A. ………………… [!!!!] ……………………….
 
So riddle me this, ESS announced a big 400MWh system sale to a utility project in Nevada. I go to look up ESS....what the heck are they actually making and selling. Just website of marketing crapola as far as I can see. Anyhow, another energy storage firm making inroads, the more the better.

 
So riddle me this, ESS announced a big 400MWh system sale to a utility project in Nevada. I go to look up ESS....what the heck are they actually making and selling. Just website of marketing crapola as far as I can see. Anyhow, another energy storage firm making inroads, the more the better.

Eh ? I thought it was Energy Vault that made the sale ?
 
WTI $74.6 bbl
Brent $79.5 /bbl
NL TTF gas €137/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

The gas price is currently surprisingly stable

1670943166679.png


Musk does wierdness at Twitter

EU pushes forward with CBAM
and

China Covid rollout

Some sort of deal done over Hungary blackmail to release support for Ukraine, details murky
and

Genuinepebble bed modular reactor, South Africans spin in graves

Finnish feedwater still unknown

China patiently pressing redox pathway

BarMar - H2Med pipeline further progress

South Africa bids at 26c for solar, wind not wanted (Eskom blocking on grid grounds ..... )

EU sets big target
EU aims for 30 GW of solar module production by 2025

Estonia applies brakes to Russia

Scotland pushing net zero rail
 
Last edited:
WTI $74.6 bbl
Brent $79.5 /bbl
NL TTF gas €137/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

The gas price is currently surprisingly stable

My gut tells me gas prices will come down steeply after the winter. There is a lot of unknown still on how cold this winter will be for europe, and how supply is going to pan out in this new market dynamic (disrupted RU supply).

Probably below €90/MWh (assuming Putin doesn't drop a nuke).
 
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My gut tells me gas prices will come down steeply after the winter. There is a lot of unknown still on how cold this winter will be for europe, and how supply is going to pan out in this new market dynamic (disrupted RU supply).

Probably below €90/MWh (assuming Putin doesn't drop a nuke).
We'll see.

We still have to get through this 22/23 winter.

In pure volume terms the 2023 underground storage refill season may be more difficult than the 2022 season. The 2021/22 Winter had the nefit of Russian supply, and so too was there partial Russian supply that trailed off during 2022. Thus 2022 had useful volumes from Russia. But the winter of 22/23 and the 2023 refill will likely have no volumes from Russia. Hence next year may be more difficult volumetrically than this year.

Against that the LNG import terminals are now more numerous, and so too are some useful pipelines - from east Med and from Norway. And LNG ship newbuilds are entering the market. So import volumes will be improved from non-Russian sources.

Plus renewables and nuclear are improving situations, so gas demand will reduce.

Price-wise the world will be in some sort of recession, and the initial Russian invasion shock is diminishing in the market.

That is a lot of factors in motion.

We'll see.
 
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WTI $75.9 bbl
Brent $81.3 /bbl
NL TTF gas €130/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

Not fast enough

Indian solar wedging out gas, not coal, interesting

US solar consequences

... which is really just one facet of this US-China story

meanwhile Chines solar juggernaut (note the Tongwei 25GW alone is about the same as the EU 30 GW hopium for 2030 !)

The printed solar dream

Big battery R Chile

Helping Ukraine rail
 
WTI $75.9 bbl
Brent $81.4 /bbl
NL TTF gas €135/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

Musk stuffs it again

China coal

US grid/renewables penetration 24% electric

US chargers

Australia trying
and

On methane

More re printable dream

Puerto Rico line

Tunisia line

Costly stuff
 
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WTI $74.2 bbl
Brent $79.0 /bbl
NL TTF gas €115/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

Dutch natural gas futures dropped more than 10% to below €120/MWh on Friday, the lowest since November 28th, and are set for an over 12% weekly fall as worries over supplies eased on milder weather forecast. EU gas stocks remain above levels usual for this time of the year and LNG imports are at the highest level for this time of the year. Storage facilities in Germany were 90.2% full as of December 14th, above the EU average of 95.9%, which is still above the normal level. Meanwhile, forecasts show temperatures in Europe are turning milder early next week, but another cold spell is forecast in the UK and the Nordics around Christmas. On the political front, EU leaders agreed to a joint statement calling on the ministers to “finalize” on Monday their work on the so-called market correction mechanism.

Chinese New Year should be mother of all Covid super spreader events at this rate

NL TTF index fight, ongoing

Californian metering fight, ongoing

Dutch hydrogen pilot - I'm sure they mean blending, not 100%

Every 3/4 GW helps

Floating 20MW units will be game changers (imho)

15MW certifications incoming

Lithium matters

Coal, peak ....?

Big battery South Africa

Green hydrogen, get your bids in
 
WTI $75.4 bbl
Brent $80.0 /bbl
NL TTF gas €107/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

NL TTF gas down markedly, imho driven by warm weather sentiment

The big EU refill

The big US refill

Rubbish !

Yay, 41 GW added

Battery prices, up
Lithium-ion battery pack prices rise for first time since 2010

Pricing green hydrogen

UK hydrogen greenwash

... as some are slowly beginning to realise,
"The Committee concludes that hydrogen is not likely to be practically and economically viable for mass use in the short and medium term for heating homes or fuelling passenger cars due to the significant cost, technological and infrastructure challenges associated, as well as the “unassailable” market lead held by alternatives such as electric cars."



Tricky politics
 
WTI $75.1 bbl
Brent $79.3 /bbl
NL TTF gas €105/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

Dutch natural gas futures were around €109/MWh on Tuesday, after rising to as high as €115, as investors try to assess supply after damage to a pipeline in Russia. There was an explosion at a link that feeds a major route crossing Ukraine and into the European Union, Russia’s RBC news outlet reported.

....... hmmm, if I am correct, and if the news is genuine, that's the pipeline that Ukraine has been absolutely punctilious in continuing to operate precisely in accordance with their trans-shipment contract with Gazprom. At this stage it mostly feeds gas that ultimately goes to Serbia, Hungary, and Transnistria, i.e. practically client-states of Putin. This smells rather like the same thing as Russia deliberately blowing up the NordStream pipelines.

Europe Green Deal

Winter risks reducing

1,200km x 1 GW intercontinental grid line : these big links are going to really change things
Black Sea Subsea Link to Connect Azerbaijan's Offshore Wind Farms with Romania, Hungary

Big blades, and typhoon rated as well, the Chinese are not hanging about waiting for others these days

Chinese solar juggernaut, 65 GW so far (end Nov) this year

Good %

That EU gas cap

16 GW hydro

Another day, another battery storage product

Ukraine rail cargo

Azeri rail
 
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WTI $78 bbl
Brent $82 /bbl
NL TTF gas €97/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

"Dutch front-month natural gas futures extended losses to below €100/MWh in the second half of December, the lowest in over one month as worries over supplies eased. Gas flows via Ukraine, the last route delivering Russian fuel to western Europe were unaffected after a Russian pipeline exploded on Tuesday. Gazprom said it would ship 42.4 million cubic metres of gas to Europe via Ukraine on Wednesday, a volume in line with recent days. Meanwhile, EU gas storage was at 83.5% of capacity as of December 19th, prompted by record LNG imports for this time of the year and an increase in wind power supply in Germany and nuclear availability in France. On the political front, EU leaders finally reached a deal on Monday to cap natural gas prices. The cap would take effect if prices on the front-month Dutch Title Transfer Facility gas hub contract exceed €180/MWh for three days, and if the price is above €35/MWh the global price for liquefied natural."

==== I will sift through the rest of the news at some point tomorrow, if it rains. I am ditching ! ===
 
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WTI $77.2 bbl
Brent $80.8 /bbl
NL TTF gas €91/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

Gas down again : "Dutch gas futures trading at €92 MWh, the lowest in over six months as record LNG imports, increased wind generation, and fuller-than-normal stockpiles ease concerns about shortages. Storage facilities in Germany were 87.2% full as of December 20th and the EU average held at 83.2%, still above the five-year seasonal average."

Polish nuclear :

French nuclear :

Belarus nuclear :

Few lucky poor

CA earthquake reminder

Big bad

Right wing toxicity

Gas cap case

Bigger test gas cap

.... or not

Simens big blades

Getting bigger

The loss problem .....

Methodologies

Big batteries

Uzbek rail

Russian nickel
 
WTI $79.5 bbl
Brent $83.9 /bbl
NL TTF gas €83/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

Wowsers, what another gas drop, with steady oil

Dutch front-month gas futures fell by over 11% to €82/MWh Friday, the lowest in over six months and were on course to book a 33% weekly drop, the most since early September, dragged by forecasts for mild weather during the holiday season and ample supplies. Natural gas prices in Europe are more than 75% below record levels of nearly €350 hit in August, as record LNG imports, increased wind generation, and fuller-than-normal stockpiles ease concerns about shortages.

=== I'm signing off daily news until the New Year, the 3rd or so of 2023. === Have a good holiday, and wishing all in the world a safer, healthier and more peaceful 2023 than the dreadful suffering of 2022 ===
 
WTI $79.5 bbl
Brent $85.0 /bbl
NL TTF gas €75/MWh (EU Natural Gas - 2022 Data - 2010-2021 Historical - 2023 Forecast - Price - Quote)

European natural gas prices extended losses in the first sessions of 2023, falling to €74/MWh, a new low since February of 2022 before the war in Ukraine started. Prices are also more than 75% below record levels of €350 hit in August, as warmer-than-expected temperatures eased concerns over shortages and the need for gas rationing. Forecasts point to temperatures above seasonal norms for most of Europe in the next two weeks. At the same time, record LNG imports, fuller-than-normal stockpiles and increased power generation from wind in France and Germany also helped to alleviate price pressures. Gas storage across Europe is 83.5% full as of January 1st, well above the five-year seasonal norm of 70%.

Eurogas

Tesla Q4 P&D curates egg, sales only up 40% yoy

Hyundai managed 1% up

world installed 268 GW of new solar capacity in 2022, with annual installations expected to hit 315 GW in 2023

Unreconstructed fossil Exxon

15MW Vestas first power

A proliferation of VPP batteries

20% wafer cut, ......... gotta love these cycles

Interesting round-up, note this quote "Major cell producer Tongwei is also making progress with its shingling technology, demonstrating that a large-volume Chinese producer is confident it can bring it into large scale production"
and canal etc applications
and note power semicon capacity constraint persists

One trade war begets another

Island curtailment

Offshore wind auction watch

16GW hybrid storage (inc coal !)

Hydrogen marine trend continues

Vietnam-China-Europe/etc rail

Motivated by persistent Summer drought low water levels halting Rhine barge traffic perhaps

HS2 south becoming uncalleable, north still receiving cuts