Wind Power, Solar Energy, Energy Storage, Hydrogen, Carbon Mitigation Credits and Taxes
Michael’s Background
The holidays are over but Michael still hopes that we can reduce atmospheric CO2 to 385 ppm by 2040 and he still wishes you a Safe, Healthy, Happy and Prosperous New Year. All from Georgetown, CO (Not DC)
While not working (on fee basis, of course) to save our Planet, Michael enjoys our Planet. Here is a picture that Michael took of a Blue Sky Day in the mountains near Georgetown, CO(not DC).
Monday, 02/22/21: Another Blue Sky Day in Clear Creek County, Colorado. Michael is hiking on the Guanella Pass Road. There is much less snow than usual. He thinks that it is climate change.
ENERGY-THE FOURTH FACTOR OF PRODUCTION
Burning fossil fuels (coal, natural gas, oil) supplies most of the energy in the industrial economies. The use of this chemical energy in economic production is one of the key characteristics of the industrial nations. The use of non-human and non-animal energy is so important to industrial societies that energy, itself, is now an additional factor of production. This was not explicitly observed in the pre-industrial era. Energy must now be added as a fourth factor to the three classical factors of economic production; land, labor and capital. Because energy is a factor of production in industrial society, its production and its use is complicated.
Source: Stavy, Michael, The Effect That the Kyoto Protocol Will Have on the Cost of Wind Power in the Signatory Countries, Global WindPower 2002 Conference, 2-5 April, Paris, France
The Texas ERCOT $9,000/MWh Price Cap Controversy.
A colleague just asked me this question:
How can the imposition of a $9,000/MWh price cap by the Texas ERCOT not be overcharging? Isn’t the price cap supposed to have prevented overcharging? Reading this it sounds like the generators are saying they were being required to charge the maximum allowed by the cap even if they could have charged less. Help me out here.
Yes, I can help.
By setting the cap too high, there can be “overcharging”. Setting the price at $9,000/MWh instead of let me say $90/MWh, there is on the one hand “overcharging” and on the other hand, a required “right” market price to get the generators to generate. This is because there is a MAJOR, MAJOR ERCOT market design flaw. It is only a day ahead market with generators are not required to generate after their day ahead contract has ended. They can generate, if they have the capacity, and if the price is right ($9,000/MWh sounds to me like a more than right price) but they do not have to generate.
To specifically answer the question: A cap is the maximum price that a generator can charge. An ERCOT generator can charge less than the cap price if the generator so chooses. The key to understanding is that once their day ahead contract has been completed, an ERCOT generator does not have to continue to generate. If they continue to generate they can price their electricity at any price up to the ERCOT cap.
The problem in the current ERCOT case is that the market was not designed correctly (it should be at least a minimum, a 2 week or monthly market, and of course, the cap should be set much lower (perhaps, $90/MWh instead of $9,000/MWh). This answer is good for the ERCOT market but it may not be good for certain generators in the current ERCOT market who decided to take full advantage of the $9,000/MWh cap.
Need further help?Contact me.
Advisor (31 years) on renewable energy finance
Experience with standard financial metrics and analyses (NPV, IRR, DCF, LC, GAAP, and EBITDA models)
BA–University of Illinois at Chicago (1967). Michael took math through differential equations and one year of both physics and chemistry.
MBA–Kellogg (Northwestern) Graduate School of Management, Full-Time Program, (1969)
CPA–Illinois (1979–inactive)
CPA–Registered Illinois (1980-1986)
E-3-(Clerk-Typist), USAR 308th Civil Affairs Group (1968-74). The mission of the 308th CA Grp was to do area studies of Scandinavia.
Private Résumé (CV) is available if you are considering Michael for a work assignment. Email him ( michael@michaelstavy.com ) with your proposed work assignment and he will decide whether to email you a copy of his Private Résumé (CV)
Michael’s Web of Science ResearcherID is AAG-6642-2019 .Use his ID and the search function at Publons to find his researcher Web of Science Profile. Go to https://publons.com/about/home/
For some serious global warming analysis, he recommends that you view the U-Tube video on why the Kyoto Protocol failed @ https://tinyurl.com/ybdadtqt
For some even more serious global warming analysis, Michael recommends that you view this U-Tube video https://tinyurl.com/83seconds
View the video, Michael at the gym getting ready for his 76th birthday. The gym is real. Michael is real. His 76th birthday really was on 02/04/2020. He really was born on 02/04/44, but the weights are NOT REAL. https://tinyurl.com/s77oer3
Thursday, 02/04/2021, was Michael’s 77th birthday. Below is a picture of the birthday snowfall on one of Michael’s favorite trees on Main Street in Georgetown, CO (not DC). Do you have a favorite tree on your street?
CleanPower 2020 now virtual
Michael’s paper, Is Wind “Power to Gas” Ready for Prime Time on the North American Grid? was selected for presentation at CLEANPOWER 2020. The gas referred to is green hydrogen (H2) or synthetic natural gas [methane {CH4 }]. The grids referred are the natural gas grid for the CH4 (or H2) gas that leaves the P2G Plant and the electric grid for the wind power that powers the P2G Plant. CLEANPOWER 2020 was VIRTUAL.
CLEANPOWER 2020: STRONGER TOGETHER–THE VIRTUAL ePOSTER GALLERY RECEPTION was June 1. The virtual ePOSTER GALLERY is still open. There is no charge to visit the Gallery. You must bring your own wine and cheese.
At this reception, Michael made an ePoster presentation of his paper, Is Power to Gas (P2G) Ready for Prime time on the North American Grid?
While CLEANPOWER 2020 did not happen in Denver this year and even though right now, Michael is sheltering in place in Georgetown, CO, AWEA and Michael are moving forward. Michael looks forward to seeing you next year at CLEAN POWER 2021 in Indianapolis, IN.
You can NOW download Michael’s CLEANPOWER 2020 paper, Is Power to Gas (P2G) Ready for Prime time on the NorthAmerican Grid?, Excel P2G HE LCOG Algorithm Worksheet and his ePoster at https://tinyurl.com/StavyPapers2020
Michael can quantify what your power to gas (P2G) plant specs have to be to compute a levelized cost of gas (LCOG) that makes sense for prime time operation. The cost will be computed in US$/mmBtu (€/kWh).
NORTH AMERICASMART WEEK ENERGY 2020 VIRTUAL CONFERENCE
Michael presented two ePosters ( 1. A Levelized Cost (LCOS) Financial Algorithm for Computing the Levelized Cost (US$/MWh) of the Bulk Storage of Solar (Wind) Energy; 2. Is P2G Ready for Prime Time on the North American Grid?) in the Finance and Asset Management Track of the ePoster Gallery at the North America 2020 Smart Week Conference (14 Sept-27 Oct).
Michael’s ePoster, Is P2G Ready for Prime Time on the North American Grid?, was also presented in a virtual Expo Hall Speech on 21 Oct 2020.
Michael’s paper, Is Hydrogen Energy Storage Readyfor Prime Time on the North American Grid. A Guide for Bankers and Investors, was selected for presentation at ASES SOLAR 20/20, 23-26 June, Washington, DC. ASES SOLAR 20/20 was Virtual.
Michael can quantify what your hydrogen energy storage plant specs have to be to compute a levelized cost of storage (LCOS) that makes sense for prime time operation. The cost will be computed in US$/MWh (€/MWh).
Michael took a break from writing his ASES SOLAR 20/20 paper to go outside. Here is a picture of the sun on Griffith Mountain in Georgetown, CO.
Griffith Mountainhighabove 907 Main St, Georgetown, CO;Spring 2020
When the Pandemic is over, you can again meet Michael at the Guggenheim
Michael’s paper, Is Hydrogen Energy Storage Ready for Prime Time on the European Grid?, was presented at Wind Europe 2019, 2-4 April, Bilbao, Spain. Download his paper and its Excel LCOS Financial Algorithm Workbook at https://tinyurl.com/y6uptvrd
When the Pandemic is over, you can again meet Michael in SLC
Michael’s paper, Is Hydrogen Energy Storage Ready for Prime Time on the North American Grid, was presented at Solar Power International 2019 (SPI-19), 23-26 September, Salt Lake City UT. https://tinyurl.com/y6uptvrd%C2%A0
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The image at the top of this page is a foot bridge over the North Branch of the Chicago River (at Monticello Ave in Albany Park, Chicago). Michael has lived along the Chicago River for 54 years. The first 12 of these 54 years he lived with his parents along the North Branch of the Chicago River in Albany Park.
For your grandchildren, below is a picture of one of Michael’ s childhood friends. This picture was taken by Michael’s father. At the time, he was encouraging Michael to meet new friends.
When he was a child, Michael swam in the Chicago River with his friend. As you can see, his friend was happy to see Michael
Michael’s 1884 Mountain Cabin in Georgetown, CO (not DC)
A Happy Chicago River Fish(1950)
In a case study for his WindEurope 2018paper, Michael used the utility-scale Cabin Creek Pumped Hydro Storage Plant (324 MW|1,496 MWh) located in Clear Creek County, CO. Georgetown, CO is the county seat of Clear Creek County. The Cabin Creek specs are subject to revision after the current upgrade is completed.
Chicago’s Palmolive Building with Beacon on: January, 2020
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