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Trends in Electricity Prices During the Transition Away from Coal by William B
May 2021 | Vol. 10 / No. 10 PRICES AND SPENDING Trends in electricity prices during the transition away from coal By William B. McClain The electric power sector of the United States has undergone several major shifts since the deregulation of wholesale electricity markets began in the 1990s. One interesting shift is the transition away from coal-powered plants toward a greater mix of natural gas and renewable sources. This transition has been spurred by three major factors: rising costs of prepared coal for use in power generation, a significant expansion of economical domestic natural gas production coupled with a corresponding decline in prices, and rapid advances in technology for renewable power generation.1 The transition from coal, which included the early retirement of coal plants, has affected major price-determining factors within the electric power sector such as operation and maintenance costs, 1 U.S. BUREAU OF LABOR STATISTICS capital investment, and fuel costs. Through these effects, the decline of coal as the primary fuel source in American electricity production has affected both wholesale and retail electricity prices. Identifying specific price effects from the transition away from coal is challenging; however the producer price indexes (PPIs) for electric power can be used to compare general trends in price development across generator types and regions, and can be used to learn valuable insights into the early effects of fuel switching in the electric power sector from coal to natural gas and renewable sources. The PPI program measures the average change in prices for industries based on the North American Industry Classification System (NAICS). -
Replacing Property Taxes on Utility Generation with Revenues from a Carbon-Based Tax: a Minnesota Tax Shift Opportunity I
Memo: To: Michael Noble, ME3 From: John Bailey, David Morris, ILSR (Tel: 612-379-3815) Date: 11/15/98 Re: Replacing Property Taxes on Utility Generation With Revenues from a Carbon-Based Tax: A Minnesota Tax Shift Opportunity I. Introduction Electric utilities in Minnesota pay four types of taxes: income tax, franchise fee (or gross receipts tax), sales tax, property tax.1 The total amount paid in each category is shown in Table 1. In 1995, the total came to $375 million. Table 1. Electric Utility Tax Paid in Minnesota in 1995 Property Tax MN Sales Tax MN Income Tax Franchise Fee Total NSP $152,078,365 $65,076,000 $31,709,000 $25,505,000 $274,368,365 Minnesota Power $34,706,493 $5,963,664 $3,843,817 $700,000 $45,213,974 Otter Tail $7,152,715 $4,197,450 $1,370,067 $233,643 $12,953,875 Interstate $3,670,381 $1,935,124 $573,770 $569,969 $6,749,244 Anoka Elec. Coop $3,179,055 $4,658,862 $0 $534,379 $8,372,296 Dakota Elec. Assoc. $4,742,500 $4,487,719 $0 $144,025 $9,374,244 Cooperative Power $7,095,000 $0 $0 $0 $7,095,000 United Power Assoc. $10,827,954 $0 $5,000 $0 $10,832,954 Total $223,452,463 $86,318,819 $37,501,654 $27,687,016 $374,959,952 Source: Minnesota Department of Public Service, 1996 Energy Policy and Conservation Report, December 1996 Recently, Minnesota has re-examined the utility tax structure in light of the restructuring of electricity occurring throughout the country. -
Biomass Basics: the Facts About Bioenergy 1 We Rely on Energy Every Day
Biomass Basics: The Facts About Bioenergy 1 We Rely on Energy Every Day Energy is essential in our daily lives. We use it to fuel our cars, grow our food, heat our homes, and run our businesses. Most of our energy comes from burning fossil fuels like petroleum, coal, and natural gas. These fuels provide the energy that we need today, but there are several reasons why we are developing sustainable alternatives. 2 We are running out of fossil fuels Fossil fuels take millions of years to form within the Earth. Once we use up our reserves of fossil fuels, we will be out in the cold - literally - unless we find other fuel sources. Bioenergy, or energy derived from biomass, is a sustainable alternative to fossil fuels because it can be produced from renewable sources, such as plants and waste, that can be continuously replenished. Fossil fuels, such as petroleum, need to be imported from other countries Some fossil fuels are found in the United States but not enough to meet all of our energy needs. In 2014, 27% of the petroleum consumed in the United States was imported from other countries, leaving the nation’s supply of oil vulnerable to global trends. When it is hard to buy enough oil, the price can increase significantly and reduce our supply of gasoline – affecting our national security. Because energy is extremely important to our economy, it is better to produce energy in the United States so that it will always be available when we need it. Use of fossil fuels can be harmful to humans and the environment When fossil fuels are burned, they release carbon dioxide and other gases into the atmosphere. -
Nuclear Power Reactors in California
Nuclear Power Reactors in California As of mid-2012, California had one operating nuclear power plant, the Diablo Canyon Nuclear Power Plant near San Luis Obispo. Pacific Gas and Electric Company (PG&E) owns the Diablo Canyon Nuclear Power Plant, which consists of two units. Unit 1 is a 1,073 megawatt (MW) Pressurized Water Reactor (PWR) which began commercial operation in May 1985, while Unit 2 is a 1,087 MW PWR, which began commercial operation in March 1986. Diablo Canyon's operation license expires in 2024 and 2025 respectively. California currently hosts three commercial nuclear power facilities in various stages of decommissioning.1 Under all NRC operating licenses, once a nuclear plant ceases reactor operations, it must be decommissioned. Decommissioning is defined by federal regulation (10 CFR 50.2) as the safe removal of a facility from service along with the reduction of residual radioactivity to a level that permits termination of the NRC operating license. In preparation for a plant’s eventual decommissioning, all nuclear plant owners must maintain trust funds while the plants are in operation to ensure sufficient amounts will be available to decommission their facilities and manage the spent nuclear fuel.2 Spent fuel can either be reprocessed to recover usable uranium and plutonium, or it can be managed as a waste for long-term ultimate disposal. Since fuel re-processing is not commercially available in the United States, spent fuel is typically being held in temporary storage at reactor sites until a permanent long-term waste disposal option becomes available.3 In 1976, the state of California placed a moratorium on the construction and licensing of new nuclear fission reactors until the federal government implements a solution to radioactive waste disposal. -
"New Energy Economy": an Exercise in Magical Thinking
REPORT | March 2019 THE “NEW ENERGY ECONOMY”: AN EXERCISE IN MAGICAL THINKING Mark P. Mills Senior Fellow The “New Energy Economy”: An Exercise in Magical Thinking About the Author Mark P. Mills is a senior fellow at the Manhattan Institute and a faculty fellow at Northwestern University’s McCormick School of Engineering and Applied Science, where he co-directs an Institute on Manufacturing Science and Innovation. He is also a strategic partner with Cottonwood Venture Partners (an energy-tech venture fund). Previously, Mills cofounded Digital Power Capital, a boutique venture fund, and was chairman and CTO of ICx Technologies, helping take it public in 2007. Mills is a regular contributor to Forbes.com and is author of Work in the Age of Robots (2018). He is also coauthor of The Bottomless Well: The Twilight of Fuel, the Virtue of Waste, and Why We Will Never Run Out of Energy (2005). His articles have been published in the Wall Street Journal, USA Today, and Real Clear. Mills has appeared as a guest on CNN, Fox, NBC, PBS, and The Daily Show with Jon Stewart. In 2016, Mills was named “Energy Writer of the Year” by the American Energy Society. Earlier, Mills was a technology advisor for Bank of America Securities and coauthor of the Huber-Mills Digital Power Report, a tech investment newsletter. He has testified before Congress and briefed numerous state public-service commissions and legislators. Mills served in the White House Science Office under President Reagan and subsequently provided science and technology policy counsel to numerous private-sector firms, the Department of Energy, and U.S. -
Biomass Cofiring in Coal-Fired Boilers
DOE/EE-0288 Leading by example, saving energy and Biomass Cofiring in Coal-Fired Boilers taxpayer dollars Using this time-tested fuel-switching technique in existing federal boilers in federal facilities helps to reduce operating costs, increase the use of renewable energy, and enhance our energy security Executive Summary To help the nation use more domestic fuels and renewable energy technologies—and increase our energy security—the Federal Energy Management Program (FEMP) in the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, assists government agencies in developing biomass energy projects. As part of that assistance, FEMP has prepared this Federal Technology Alert on biomass cofiring technologies. This publication was prepared to help federal energy and facility managers make informed decisions about using biomass cofiring in existing coal-fired boilers at their facilities. The term “biomass” refers to materials derived from plant matter such as trees, grasses, and agricultural crops. These materials, grown using energy from sunlight, can be renewable energy sources for fueling many of today’s energy needs. The most common types of biomass that are available at potentially attractive prices for energy use at federal facilities are waste wood and wastepaper. The boiler plant at the Department of Energy’s One of the most attractive and easily implemented biomass energy technologies is cofiring Savannah River Site co- fires coal and biomass. with coal in existing coal-fired boilers. In biomass cofiring, biomass can substitute for up to 20% of the coal used in the boiler. The biomass and coal are combusted simultaneously. When it is used as a supplemental fuel in an existing coal boiler, biomass can provide the following benefits: lower fuel costs, avoidance of landfills and their associated costs, and reductions in sulfur oxide, nitrogen oxide, and greenhouse-gas emissions. -
Ecotaxes: a Comparative Study of India and China
Ecotaxes: A Comparative Study of India and China Rajat Verma ISBN 978-81-7791-209-8 © 2016, Copyright Reserved The Institute for Social and Economic Change, Bangalore Institute for Social and Economic Change (ISEC) is engaged in interdisciplinary research in analytical and applied areas of the social sciences, encompassing diverse aspects of development. ISEC works with central, state and local governments as well as international agencies by undertaking systematic studies of resource potential, identifying factors influencing growth and examining measures for reducing poverty. The thrust areas of research include state and local economic policies, issues relating to sociological and demographic transition, environmental issues and fiscal, administrative and political decentralization and governance. It pursues fruitful contacts with other institutions and scholars devoted to social science research through collaborative research programmes, seminars, etc. The Working Paper Series provides an opportunity for ISEC faculty, visiting fellows and PhD scholars to discuss their ideas and research work before publication and to get feedback from their peer group. Papers selected for publication in the series present empirical analyses and generally deal with wider issues of public policy at a sectoral, regional or national level. These working papers undergo review but typically do not present final research results, and constitute works in progress. ECOTAXES: A COMPARATIVE STUDY OF INDIA AND CHINA1 Rajat Verma2 Abstract This paper attempts to compare various forms of ecotaxes adopted by India and China in order to reduce their carbon emissions by 2020 and to address other environmental issues. The study contributes to the literature by giving a comprehensive definition of ecotaxes and using it to analyse the status of these taxes in India and China. -
Phase-Out 2020: Monitoring Europe's Fossil Fuel Subsidies
Phase-out 2020 Monitoring Europe’s fossil fuel subsidies Ipek Gençsü, Maeve McLynn, Matthias Runkel, Markus Trilling, Laurie van der Burg, Leah Worrall, Shelagh Whitley, and Florian Zerzawy September 2017 Report partners ODI is the UK’s leading independent think tank on international development and humanitarian issues. Climate Action Network (CAN) Europe is Europe’s largest coalition working on climate and energy issues. Readers are encouraged to reproduce material for their own publications, as long as they are not being sold commercially. As copyright holders, ODI and Overseas Development Institute CAN Europe request due acknowledgement and a copy of the publication. For 203 Blackfriars Road CAN Europe online use, we ask readers to link to the original resource on the ODI website. London SE1 8NJ Rue d’Edimbourg 26 The views presented in this paper are those of the author(s) and do not Tel +44 (0)20 7922 0300 1050 Brussels, Belgium necessarily represent the views of ODI or our partners. Fax +44 (0)20 7922 0399 Tel: +32 (0) 28944670 www.odi.org www.caneurope.org © Overseas Development Institute and CAN Europe 2017. This work is licensed [email protected] [email protected] under a Creative Commons Attribution-NonCommercial Licence (CC BY-NC 4.0). Cover photo: Oil refinery in Nordrhein-Westfalen, Germany – Ralf Vetterle (CC0 creative commons license). 2 Report Acknowledgements The authors are grateful for support and advice on the report from: Dave Jones of Sandbag UK, Colin Roche of Friends of the Earth Europe, Andrew Scott and Sejal Patel of the Overseas Development Institute, Helena Wright of E3G, and Andrew Murphy of Transport & Environment, and Alex Doukas of Oil Change International. -
Coal Characteristics
CCTR Indiana Center for Coal Technology Research COAL CHARACTERISTICS CCTR Basic Facts File # 8 Brian H. Bowen, Marty W. Irwin The Energy Center at Discovery Park Purdue University CCTR, Potter Center, 500 Central Drive West Lafayette, IN 47907-2022 http://www.purdue.edu/dp/energy/CCTR/ Email: [email protected] October 2008 1 Indiana Center for Coal Technology Research CCTR COAL FORMATION As geological processes apply pressure to peat over time, it is transformed successively into different types of coal Source: Kentucky Geological Survey http://images.google.com/imgres?imgurl=http://www.uky.edu/KGS/coal/images/peatcoal.gif&imgrefurl=http://www.uky.edu/KGS/coal/coalform.htm&h=354&w=579&sz= 20&hl=en&start=5&um=1&tbnid=NavOy9_5HD07pM:&tbnh=82&tbnw=134&prev=/images%3Fq%3Dcoal%2Bphotos%26svnum%3D10%26um%3D1%26hl%3Den%26sa%3DX 2 Indiana Center for Coal Technology Research CCTR COAL ANALYSIS Elemental analysis of coal gives empirical formulas such as: C137H97O9NS for Bituminous Coal C240H90O4NS for high-grade Anthracite Coal is divided into 4 ranks: (1) Anthracite (2) Bituminous (3) Sub-bituminous (4) Lignite Source: http://cc.msnscache.com/cache.aspx?q=4929705428518&lang=en-US&mkt=en-US&FORM=CVRE8 3 Indiana Center for Coal Technology Research CCTR BITUMINOUS COAL Bituminous Coal: Great pressure results in the creation of bituminous, or “soft” coal. This is the type most commonly used for electric power generation in the U.S. It has a higher heating value than either lignite or sub-bituminous, but less than that of anthracite. Bituminous coal -
Policy Brief Organisation for Economic Co-Operation and Development
OCTOBER 2008Policy Brief ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Nuclear Energy Today Can nuclear Introduction energy help make Nuclear energy has been used to produce electricity for more than half a development century. It currently provides about 15% of the world’s supply and 22% in OECD sustainable? countries. The oil crisis of the early 1970s provoked a surge in nuclear power plant orders How safe is and construction, but as oil prices stabilised and even dropped, and enough nuclear energy? electricity generating plants came into service to meet demand, orders tailed off. Accidents at Three Mile Island in the United States (1979) and at Chernobyl How best to deal in Ukraine (1986) also raised serious questions in the public mind about nuclear with radioactive safety. waste? Now nuclear energy is back in the spotlight as many countries reassess their energy policies in the light of concerns about future reliance on fossil fuels What is the future and ageing energy generation facilities. Oil, coal and gas currently provide of nuclear energy? around two-thirds of the world’s energy and electricity, but also produce the greenhouse gases largely responsible for global warming. At the same For further time, world energy demand is expected to rise sharply in the next 50 years, information presenting all societies worldwide with a real challenge: how to provide the energy needed to fuel economic growth and improve social development while For further reading simultaneously addressing environmental protection issues. Recent oil price hikes, blackouts in North America and Europe and severe weather events have Where to contact us? also focused attention on issues such as long-term price stability, the security of energy supply and sustainable development. -
Lecture 10: Tidal Power
Lecture 10: Tidal Power Chris Garrett 1 Introduction The maintenance and extension of our current standard of living will require the utilization of new energy sources. The current demand for oil cannot be sustained forever, and as scientists we should always try to keep such needs in mind. Oceanographers may be able to help meet society's demand for natural resources in some way. Some suggestions include the oceans in a supportive manner. It may be possible, for example, to use tidal currents to cool nuclear plants, and a detailed knowledge of deep ocean flow structure could allow for the safe dispersion of nuclear waste. But we could also look to the ocean as a renewable energy resource. A significant amount of oceanic energy is transported to the coasts by surface waves, but about 100 km of coastline would need to be developed to produce 1000 MW, the average output of a large coal-fired or nuclear power plant. Strong offshore winds could also be used, and wind turbines have had some limited success in this area. Another option is to take advantage of the tides. Winds and solar radiation provide the dominant energy inputs to the ocean, but the tides also provide a moderately strong and coherent forcing that we may be able to effectively exploit in some way. In this section, we first consider some of the ways to extract potential energy from the tides, using barrages across estuaries or tidal locks in shoreline basins. We then provide a more detailed analysis of tidal fences, where turbines are placed in a channel with strong tidal currents, and we consider whether such a system could be a reasonable power source. -
Toward a Sustainable Electric Utility Sector
The Distributed Utility Concept: Toward a Sustainable Electric Utility Sector Steven Letendre, John Byrne, and Young-Doo Wang, Center for Energy and Environmental Policy, University of Delaware The U.S. electric utility sector is entering an uncertain period as pressure mounts to cut costs and minimize environmental impacts. Many analysts believe that exposing the industry to competition is the key to reducing costs. Most restructuring proposals acknowledge the need to maintain environmental quality and suggest mechanisms for assuring continued support for end-use efficiency and renewable energy in a deregulated electric utility industry. Two of the most prominent ideas are non-bypassable line charges and portfolio standards. This paper suggests another option based on the distributed utility (DU) concept in which net metering and a form of performance-based ratemaking allow distributed generation, storage, and DSM to play an important role in a new competitive electric utility sector. A DU option directly incorporates these resources into the electric system by explicitly acknowledging their value in deferring distribution equipment upgrades. INTRODUCTION electric utility industry. In our view, the DU option has been neglected in the current debate. The electric utility sector in the U.S. is on the verge of A DU strategy involves a fundamental shift in the way fundamental change as regulators, policymakers, and indus- electricity is delivered, with a move away from large-scale try officials seek a strategy for introducing competition into central generation to distributed small-scale generation and the industry. The move toward competition is driven by the storage, and targeted demand-side management. To date, belief that significant efficiency gains could be realized by the DU concept has mainly been analyzed in terms of its exposing the industry to market forces.