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Author Topic: Fossil Fuel Subsidies - The Invisible Ones are Worse Than the Obvious Ones!  (Read 3782 times)

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The REAL "real world"
« on: October 29, 2013, 03:04:34 pm »
Feast your eyes on this EXCELLENT comment that summarizes what pro-fossil fuelers REFUSE to see  ;) about TRUE energy costs versus pricing.

 Gerry Wootton   
 October 29, 2013 

The point about energy independence may not apply (yet) to countries with lots of coal and gas, or at least not in an obvious way. For countries that rely to any extent on imported energy this is more expensive than face value as it continuously drains the domestic money supply: while energy to some extent is converted into value, a large part of it is simply lost even in relatively efficient systems so the balance of trade is always negative.

However, Germany does have a fair bit of coal; the thing they have realized is that coal because of its extreme externalities places a heavy distributed burden on the economy even if its point load seems small. From this perspective, dependence on non-renewable energy, even if domestic, is not energy independence as this energy use places a burden on the economy while scarcity alone determines pricing.

One important aspect mentioned in the article is that distributed generation attracts private capital in a way that the centralized model does not and also frees up competition in the market.

A market does not even need a great deal of free competition to make it become competitive. This is certainly one reason that for profit utilities must resist: what is good for the consumer is not good for the shareholder  :emthup:; further, enterprises that have a history of monopolistic control are often poorly equipped  ;) to work in a truly competitive way.  >:(

In my experience, another value of distributed generation, not mentioned in the article, is that it makes consumers more aware of consumption and motivates restraint on consumption and desire for efficiency.

In off-grid applications there is always a highly visible tension between the cost of generation and storage versus the cost of high efficiency appliances. American utilities unwittingly are playing chicken with that issue by limiting roof-top capacity to an approximation of average customer demand.

The Official Explanation for the German Energy Transition

Short List of willfully blind (but not batty  ;) ) bats:

Nicole Foss
Gail Tverberg
Tyler Durden
Charles Hall
CNBC, etc.   >:(
« Last Edit: November 12, 2013, 07:04:53 pm by AGelbert »
This poor man cried, and the Lord heard him, and saved him out of all his troubles.. -- Psalm 34:6


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