Tuesday, November 8, 2011

Here comes the Sun : Krugman Says


For decades the story of technology has been dominated, in the popular mind and to a large extent in reality, by computing and the things you can do with it. Moore’s Law — in which the price of computing power falls roughly 50 percent every 18 months — has powered an ever-expanding range of applications, from faxes to Facebook.

Original post:
Fred R. Conrad/The New York Times
Paul Krugman

Our mastery of the material world, on the other hand, has advanced much more slowly. The sources of energy, the way we move stuff around, are much the same as they were a generation ago.
But that may be about to change. We are, or at least we should be, on the cusp of an energy transformation, driven by the rapidly falling cost of solar power. That’s right, solar power.
If that surprises you, if you still think of solar power as some kind of hippie fantasy, blame our fossilized political system, in which fossil fuel producers have both powerful political allies and a powerful propaganda machine that denigrates alternatives.
Speaking of propaganda: Before I get to solar, let’s talk briefly about hydraulic fracturing, a k a fracking.
Fracking — injecting high-pressure fluid into rocks deep underground, inducing the release of fossil fuels — is an impressive technology. But it’s also a technology that imposes large costs on the public. We know that it produces toxic (and radioactive) wastewater that contaminates drinking water; there is reason to suspect, despite industry denials, that it also contaminates groundwater; and the heavy trucking required for fracking inflicts major damage on roads.
Economics 101 tells us that an industry imposing large costs on third parties should be required to “internalize” those costs — that is, to pay for the damage it inflicts, treating that damage as a cost of production. Fracking might still be worth doing given those costs. But no industry should be held harmless from its impacts on the environment and the nation’s infrastructure.
Yet what the industry and its defenders demand is, of course, precisely that it be let off the hook for the damage it causes. Why? Because we need that energy! For example, the industry-backed organization energyfromshale.org declares that “there are only two sides in the debate: those who want our oil and natural resources developed in a safe and responsible way; and those who don’t want our oil and natural gas resources developed at all.”
So it’s worth pointing out that special treatment for fracking makes a mockery of free-market principles. Pro-fracking politicians claim to be against subsidies, yet letting an industry impose costs without paying compensation is in effect a huge subsidy. They say they oppose having the government “pick winners,” yet they demand special treatment for this industry precisely because they claim it will be a winner.
And now for something completely different: the success story you haven’t heard about.
These days, mention solar power and you’ll probably hear cries of “Solyndra!” Republicans have tried to make the failed solar panel company both a symbol of government waste — although claims of a major scandal are nonsense — and a stick with which to beat renewable energy.
But Solyndra’s failure was actually caused by technological success: the price of solar panels is dropping fast, and Solyndra couldn’t keep up with the competition. In fact, progress in solar panels has been so dramatic and sustained that, as a blog post at Scientific American put it, “there’s now frequent talk of a ‘Moore’s law’ in solar energy,” with prices adjusted for inflation falling around 7 percent a year.
This has already led to rapid growth in solar installations, but even more change may be just around the corner. If the downward trend continues — and if anything it seems to be accelerating — we’re just a few years from the point at which electricity from solar panels becomes cheaper than electricity generated by burning coal.
And if we priced coal-fired power right, taking into account the huge health and other costs it imposes, it’s likely that we would already have passed that tipping point.
But will our political system delay the energy transformation now within reach?
Let’s face it: a large part of our political class, including essentially the entire G.O.P., is deeply invested in an energy sector dominated by fossil fuels, and actively hostile to alternatives. This political class will do everything it can to ensure subsidies for the extraction and use of fossil fuels, directly with taxpayers’ money and indirectly by letting the industry off the hook for environmental costs, while ridiculing technologies like solar.
So what you need to know is that nothing you hear from these people is true. Fracking is not a dream come true; solar is now cost-effective. Here comes the sun, if we’re willing to let it in.

Sunday, November 6, 2011

Time for the US to Compete in Clean-tech says Chu


WASHINGTON, D.C. – In his speech to the Washington Post Live Smart Energy Conference today, Secretary of Energy Steven Chu highlighted the choice America faces on whether or not to take advantage of the huge economic opportunity and compete with countries like China in the clean energy race.
Excerpts and full text of remarks are below:
“Once again, there is a huge opportunity before us – a global clean energy market that is already worth an estimated $240 billion and is growing rapidly.  In fact, a very reasonable estimate is that solar photovoltaic systems alone represent a global market worth more than $80 billion this year.”
“China – like many countries – has learned from the U.S. how government can support critical emerging industries.  Last year, China offered roughly $30 billion in government financing to its solar companies, including $7 billion to Suntech.  At least 10 countries have adopted renewable electricity standards, and more than 50 countries offer some type of public financing for clean energy projects.  For example, Germany and Canada operate government-backed clean energy lending programs, and in the last several months, the UK, Australia, and India have announced plans to do the same.”
“America faces a choice today: Are we going to recognize the opportunity and compete in the clean energy race or will we wave the white flag and watch all of these jobs go to China, Korea, Germany and other countries?”
“The global competition is fierce, and support for innovative technologies comes with inherent risk. Not every company or every product will succeed, but that is no reason to sit on the sidelines and concede leadership in clean energy. Some in Washington are ready to throw in the towel and write off the clean energy industry.  They don’t think America can compete or they don’t think it’s worth trying. Others think that the best thing we can do is for the government to get out of the way and let the free market work.”
“To those in Washington who say we cannot or should not compete, I say: that’s not who we are.  In America, when we fall behind, we don’t give up. We dig in and come back. Why should we concede one of the biggest growing markets in the world that is in our sweet spot: technological and manufacturing innovation? America has the opportunity to lead the world in clean energy technologies and provide the foundation for our prosperity. We remain the most innovative country in the world ... but “Invented in America” is not good enough. We need to ensure that these technologies are invented in America, made in America and sold around the world.  That’s how we’ll prosper in the 21st century.”
Secretary Chu’s full remarks to the Washington Post Live Smart Energy Conference, as prepared for delivery, HERE.