Daily Archives: April 24, 2015

Rethink the Grid: Personal Power Stations

April 24, 2015Energy and Climate Change, Energy Storage, OpinionTrevor Larkum

Rethinking the grid is quickly emerging as one of the hottest topics. The concept of our own personal power stations can be seductive…and just might save us a whole lot of money too.

“Get big or get out!” Those were the famous, and controversial, words of Earl Butz, Secretary of Agriculture in the seventies. Considering the combination of renewable technology and battery storage, a new popular mantra may emerge: get small and be free.

Much ado about all things renewable together with the objections that technologies can never fully replace fossil fuel generation is popular among a certain set. Here in Texas, among arch conservatives, Solyndra lives on…and on…and on. But the truth is that Solyndra is ancient history. New technologies are ramping up and have been highly successful and may change the way we use the grid forever. Perhaps most interesting of all, however, is the way in which new ways to think about the grid and electricity are prompting entrepreneurs worldwide to rethink, remake and reuse. For instance, what if we all had the ability to transform our homes into micro personal power stations?

The grid is an interesting beast. It typically operates using several different power options together with some back up reserve. Oddly, it runs with virtually zero storage capacity because large amounts of electricity are difficult to store. So nobody really addressed that problem. Until now.

What if we decided to think outside our box and imagine that instead of myriad wires joining each of our houses, there were solar panels on the roof. These in turn pumped electricity into an array of batteries in our garages next to the work bench. Or into our EV which could also act as a storage vehicle. No pun intended.

Large scale storage is a problem because it is large scale. The needs of a utility are vastly different than the needs of an individual home. So tackling the problem of storage would seem to make the most sense if done on a small scale. GTM Research expects home battery storage to grow into a billion dollar a year money generator by 2018. That’s only three years away. Solar City, a large solar installer, is already offering battery storage for home use. They describe their system as:

“…a cost-effective, wall-mounted storage appliance that is small, powerful and covered by a long lasting full 10 year warranty.”

So our homes become a micro-grid. Having said all this, there will still be a need for large scale utility generation. Industrial users for instance would probably be better off using the grid system. This is where the larger scale storage solutions currently being tried and offered are coming into their own.

Electricity supply is never constant. It fluctuates throughout the day. To use renewable energy on a large scale, battery storage is needed. While lithium ion batteries have taken center stage, other less sexy technologies are being employed with success. If lithium ion batteries are the Tesla’s of the energy storage world, then flow batteries are the pick up trucks: hard working and reliable. Lead acid batteries too are gaining traction. All of these technologies perform different functions which are critical to grid reliability.

Navigant Research stated:

“Flow batteries have been shown to excel at long-duration energy storage applications and advanced lead-acid batteries have proven to be excellent performers in power-intensive applications.”

Further, these markets are expected to grow quickly. Navigant forecasts:

“…the annual revenue of cell sales for advanced batteries for utility-scale applications will grow from $221.8 million in 2014 to $17.8 billion in 2023.”

And equally interesting, Navigant projects:

“…the annual energy capacity of advanced batteries for utility-scale energy storage applications will grow from 412 megawatt-hours (MWh) in 2014 to more than 51,200 MWh in 2023, at a compound annual growth rate of 71 percent.”

Other aspects of storage are also being proactively addressed. One of the most common arguments heard is “what do we do with the spent automotive batteries”? Interestingly enough, BMW, and others, are working on that. Apparently an EV battery can have as much as 70% of its storage capacity still intact after its automotive life. So BMW has partnered up with Bosch and Vattenfall, a Swedish company, to repurpose used battery packs into grid storage. Home storage is also a possibility. So rethink, remake and reuse is really happening.

Another example of rethink is the recent announcement by Nissan that they have entered into a deal with Endesa, a Spanish utility behemoth. This arrangement would allow motorists to sell the unused power stored in their EV’s back to the grid. Such access to additional power could potentially provide extra stability for the utility and thereby the grid.

The grid doesn’t have to be run the way it has always been run. We can innovate. And innovation is precisely what is occurring. Perhaps the most important “rethink” of all is in our own heads as we learn to open our minds to using the grid in a whole new way.

Personal pizzas, personal computers, personal trainers…and now our own personal power stations.

Source: Energy Policy Forum

Wall Street Losing Millions From Bad Energy Loans

April 24, 2015Energy and Climate Change, News, Reviews and Comment, OilTrevor Larkum

Oil companies continue to get burned by low oil prices, but the pain is bleeding over into the financial industry. Major banks are suffering huge losses from both directly backing some struggling oil companies, but also from buying high-yield debt that is now going sour.

The Wall Street Journal reported that tens of millions of dollars have gone up in smoke on loans made to the energy industry by Citigroup, Goldman Sachs, and UBS. Loans issued to oil and gas companies have looked increasingly unappetizing, making it difficult for the banks to sell them on the market.

To make matters worse, much of the credit issued by the big banks have been tied to oil field services firms, rather than drillers themselves – companies that provide equipment, housing, well completions, trucks, and much more. These companies sprung up during the boom, but they are the first to feel the pain when drilling activity cuts back. With those firms running out of cash to pay back lenders, Wall Street is having a lot of trouble getting rid of its pile of bad loans.

Robert Cohen, a loan-portfolio manager at DoubleLine Capital, told the Wall Street Journal that he declined to purchase energy loans from Citibank.

“We’ve been pretty shy about dipping back into the energy names,” he said. “We’re taking a wait-and-see attitude.”

But some big investors jumped back into the high-yield debt markets in February as it appeared that oil prices stabilized and were even rebounding. However, since March 4 when oil prices began to fall again, an estimated $7 billion in high-yield debt from distressed energy companies was wiped out, according to Bloomberg.

The high-yield debt market is being overrun by the energy industry. High-yield energy debt has swelled from just $65.6 billion in 2007 up to $201 billion today. That is a result of shaky drillers turning to debt markets more and more to stay afloat, as well as once-stable companies getting downgraded into junk territory. Yields on junk energy debt have hit 7.44 percent over government bonds, more than double the rate from June 2014.

An estimated $1 trillion in loans were provided to the energy industry over the past decade, with most of that passed off to other investors. The practice is common, but starts to fall apart when the quality of loans starts to deteriorate. Banks like Citi have been sitting on bad loans, hoping for a rebound. But with oil prices dipping once again, big banks are starting to eat the losses. Some bad loans were sold off in mid-March at 65 cents on the dollar, the Wall Street Journal reported on March 18.

Souring debt comes at a time when oil and gas firms are also issuing new equity at the fastest pace in more than a decade. Drillers are desperate for cash, and issuing new stock, while not optimal because it dilutes the value of all outstanding shares, is preferable to taking on mountains of new debt. An estimated $8 billion in new equity was issued in the first quarter of 2015 in the energy sector, the highest quarterly total in more than ten years. But, falling oil prices have caused share prices to tank, reducing the value of new shares sold, and ultimately, the amount of cash that can be raised.

Big Finance’s struggle to unload some bad energy loans will ripple right back to the energy industry. If financial institutions cannot find buyers, they will be a lot less likely to issue new credit. That means that oil and gas companies in need of new cash injections may have trouble finding willing partners. Once access to cash is cut off, the worst-off drillers could be forced into a liquidity crisis.

Source: Oil Price

Kia Soul EV Claims Top Honours as the First CANADIAN GREEN CAR OF THE YEAR

April 24, 2015Electric Cars, Kia, News, Reviews and Comment, Soul EVTrevor Larkum

What is a Green Vehicle?
It is a vehicle which, for its size and purpose, provides the Canadian consumer with environmentally-friendly returns that compare favourably with other vehicles in its class.

VANCOUVER, March 24, 2015 /CNW/ – In an early afternoon press conference at the opening ceremonies of the Vancouver International Auto Show, the Kia Soul EV claimed top honours when the car was declared the 2015 Canadian Green Car of the Year by the Automobile Journalists Association of Canada (AJAC).

The Canadian Green Car of the Year award, in its preliminary season, was presented by Kevin Corrigan, Chair of the Canadian Green Car Committee at the Vancouver International Auto Show from a finalist list of four (4) vehicles. The top four (4) finalists, the Honda Fit, the Kia Soul EV, the Subaru Legacy and the Toyota Camry Hybrid, were announced at the opening ceremonies of the Canadian International Auto Show in Toronto back in February. The 4 finalists were “crowned’ with green car toppers for the duration of the Toronto show – and will subsequently wear these same crowns in Vancouver – which showcase their place in the running for the Canadian Green Car of the Year Award.

“Kia Canada is thrilled that the all-new 2015 Kia Soul EV has been recognized by AJAC as the Canadian Green Car of the Year “,

said Maria Soklis, Vice President and Chief Operating Officer, Kia Canada Inc.

“This acknowledgement is testimony to Kia’s ongoing commitment to deliver environmentally friendly automotive solutions and diverse powertrains to consumers without compromising on design or comfort.”

7 vehicles became eligible for this top honour after being tested in the annual “TestFest” event that AJAC’s Canadian Car of the Year Awards program hosts annually in October. These four (4) finalists represent the back to back, same day testing and vote results compiled by the largest group of Canada’s best-known automotive journalists, who gather every year for a 5 day testing program, in late fall. KPMG, the accounting firm, tabulates all vote results and presents AJAC with the top 3 – or in this case, the top 4 due to a tie – in 15 different categories. Acura, Cadillac and Mercedes-Benz (smart), were also in the running.

Mr. Corrigan explains,

“While an electrically-propelled sub-compact, thought of as green, may well suit those living within the city limits, is it not also true to view a fuel-efficient 6 cyl luxury hybrid product likewise, when compared to a V8 gas-powered vehicle in its relative segment of the market? Yes, the Canadian consumer requires environmentally-friendly transportation which meets their needs, whether it be a small city runaround, or a fuel-efficient luxury product for their airport limousine business. So when it comes to vehicle transportation, any & every vehicle which offers both fuel-efficiency and addresses environmental concerns is worthy of our attention, and praise, where due”.

Source: Automobile Journalists Association of Canada

Electric vehicles sneaking up in the race for global car dominance

April 24, 2015Electric Cars, Opinion, SalesTrevor Larkum

The age of electric vehicles, those quirky cars that have been perennially stigmatized as lacking range, reliability and affordability, is finally here. If you don’t believe that statement, you probably haven’t driven one recently. Or attended a Formula E auto race. Or taken a look at some of the sales numbers.

Or all of the above.

For the first time in a century, the electric vehicle (EV) is on the road to becoming a serious competitive challenge to its petroleum nemesis. That’s not to say that the world’s billion-plus “conventional” cars are ready to be dragged en masse to scrap yards with big cranes and magnets. Nor do a smattering of all-electric Teslas and BMWs suggest that the petroleum industry will easily surrender its headlock on the global transportation market. But at a minimum, today’s EV renaissance does strengthen the case that long-term forecasts for world oil consumption are overstated. And depending on the speed of technological advances in batteries and electric power trains, there are scenarios where EV adoption rates could surprise.

The most exciting place to witness EV advances is at an FIA Formula E racing event. All-electric Formula E (fiaformulae.com) is a newbie on the world racing circuit, but has attracted some of the same legendary names that have made its raucous Formula 1 cousin famous. For example, Williams Advanced Engineering is championing batteries; McLaren is involved with the motors; and founding partner Renault is integrating all the systems into sleek vehicles that look like mechanical doppelgangers for F1 race cars.

A couple of weekends ago, I attended the first North American Formula E race, the Miami ePrix, held just north of Biscayne Bay. Lineups and shoulder-to-shoulder crowds amplified the sense that this fresh event was more than just about seeing who would spray champagne at the finish line. Teal-coloured banners everywhere reminded the crowds that they were there to “Drive the Future.”

Race time arrived. Four o’clock. The announcer called the drivers to their starting positions. No one else seemed to notice, but I smiled at the absence of the obviously antiquated, “Start your engines!” command. Suddenly, off the mark, 10 cars lurched down the caged, 2.2-kilometre circuit with tires squealing. And for the rest of the one-hour race, that was it for loud noise. At every lap, the Formula E cars swished by with a satisfying, almost calming, smooth whine. Unlike a deafening Formula 1 race, a large part of the thrill was not having to silicone my ears shut.

Technological advances from the extreme engineering of the Formula E sphere will trickle down to mainstream cars, just as petroleum-powered cars have benefited from seven decades of F1 racing. To be sure, electric powertrains still need more work before mainstream EVs can be a compelling substitute for gas, gears and grease. But the race is on. EV sales figures from early laps of commercialization show that market penetration is worth a glance over the shoulder – especially if you’re driving for the oil team.

Our feature chart (Figure 1) this week gives an updated monthly sales snapshot of pure battery electric vehicles (BEVs) and plug-in hybrids (PHEVs). The latter still use a small gasoline-powered engine as a blanky for range, but primarily rely on a battery. Gasoline prices are overlain on the chart as a reference for the incumbent competition.

Adoption of EVs in the U.S. market began a steady rise in 2011. Conditions were favourable when average gasoline prices were in the range of $3.75 to $4.00 a gallon. Sales numbers of almost 10,000 a month still pale compared to overall U.S. auto sales of over a million a month; however it’s the uptrend of early adoption that’s noteworthy. Over the past six months, U.S. sales momentum appears to have fallen in tandem with gasoline prices; this is not surprising as there is less incentive for consumers to plug in when the price spread between the pump and the wall socket narrows. But like a race, it’s too early to call a downtrend.

For one thing, don’t confuse adoption with seasonality: EV sales have traditionally had a dip during the winter months; 2014 and 2015 were especially harsh in the eastern US. Globally, sales of EVs – four-wheeled and two-wheeled varieties – are on an upswing in Europe and Asia. The International Energy Agency reports that there are now 230 million electric bikes in China. Global car sales (battery electric vehicles and plug-in hybrid electric vehicles) are tracking 25,000 a month, and growing 50 per cent per year if the trend line is extrapolated.

Diesel- and gasoline-powered cars will still have the pole position for many years to come. Nevertheless, the EVs are off to the races, quietly sneaking up on their competition.

Source: Globe and Mail

Plug-in van grant extended

April 24, 2015e-NV200, Electric Vans, Kangoo Z.E., News, Reviews and Comment, Nissan, RenaultTrevor Larkum

British businesses will be able to continue saving money and cutting their carbon footprint as the government announced that the ultra-low emission plug-in van grant will be extended.

Transport Minister Baroness Kramer confirmed that the grant, which launched in 2012 and provides purchasers with a 20% discount off the upfront cost worth up to £8,000, would be extended to meet continued demand.

In addition to lower running costs, the scheme also allows businesses that purchase the vans to take advantage of a range of tax incentives, including zero vehicle excise duty and no congestion charges in London.

Transport Minister Baroness Kramer said:

“Ultra-low emission vans are cheaper to run and with a variety of models now eligible for the grant, there has never been a better time for business to take advantage and start saving money. The government is supporting UK companies that are leading the way on cleaner and greener transport.”

Since 2012 the initiative has supported over 1,250 vans, with vehicle running costs potentially as low as 2 pence per mile. Gnewt Cargo is one company which has benefited from the plug-in van grant and it now has the largest 100% commercial electric fleet in the UK.

Co-founder and CEO Sam Clarke, said:

“As a business we have grown significantly over the last few years in London and are expanding nationally in 2015. Our fleet of over 100 plug-in vans are economical to run and also help improve air quality in the capital.

“The plug-in van grant is a great way to encourage other fleets to take this same step. We are therefore delighted to hear that support for electric commercial fleets is set to continue.”

Source: Newspress