Nuclear power in Germany

Conservatives in Chancellor Angela Merkel’s coalition want to freeze its current phase out of nuclear power plants, which was decided in 2000 by a government of Greens and Social Democrats. But Ms. Merkel’s coalition partners, the left-leaning Social Democrats, are insisting she upholds a pact to shut down the country’s last nuclear power plants by 2021.

Germany gets around 22% of its electricity supply from nuclear energy, compared with around half from coal, and the rest mostly from natural gas and renewable sources such as wind.

The country is investing heavily in wind and solar power and is drawing up laws that require higher energy efficiency in buildings and transport. But many experts doubt wind and solar power can both compensate for lost nuclear energy and meet Germany’s ambitious carbon-cutting goals at the same time.

Replacing nuclear power would probably entail more use of coal and gas. Natural gas is getting costlier along with oil, and greater use will make Germany even more reliant on supplies from Russia. Coal-fired power stations emit the most greenhouse gas – especially the ones using lignite or brown coal, which Germany has in abundance, unlike oil, natural gas or sunshine.

Social Democrats say they might agree to prolong the life of the most modern nuclear reactors by a few years, if conservatives agree to a constitutional amendment banning the construction of any new reactors.

Source: WSJ, 10/07/08

Cost of electric cars

Recent cost comparisons by Deutsche Bank’s auto analysts suggest electric cars will be cheaper to operate than conventional vehicles. Fuel costs per mile for gasoline-fuelled cars are $0.27 in Germany, $0.24 in Britain, $0.17 in Brazil and $0.11 in the United States, with differences driven by fuel taxes.

For electric vehicles, the cost per mile is a mere $0.02. If one adds in the cost of a battery amortised over the life of the car, the cost is still only $0.10. Batteries will be expensive, at least in the early years, but electric cars won’t need costly engines or complex transmissions like today’s autos. With fewer moving parts, reliability will increase.

Obviously, it would take a while to replace the existing transportation fleet made up of cars that last 15 years.

Source: WSJ, 08/07/08

G8 summit conclusions

On July 9, 2008, leaders of the Group of Eight nations plus others including the biggest developing economies agreed to “combat climate change in accordance with common but differentiated responsibilities”.

But the statement – on the final day of the annual G-8 summit – contained no jointly agreed-to numerical targets for reducing emissions that contribute to global warming. Poorer nations said they wouldn’t sign up to greenhouse gas reduction targets until richer ones did more, while the richer countries as a group will commit to more only when the developing world signs up for targets.

Unlike the U.S., the E.U. and Japan have both offered significant reductions in greenhouse gases. The E.U. has said it will reduce emissions by 20% from 1990 levels by 2020. Japan has a goal of a 14% reduction from 2005 levels by 2020 and a long-term goal of a 60-80% reduction by 2050.

Source: WSJ, 10/07/08

CDM and coal-fired plants

In September 2007, the U.N.’s Clean Development Mechanism board opened the door to subsidizing new coal-burning plants. U.N. official strongly defend their approach, arguing that since the world is widely expected to get most of its energy from fossil fuel for decades, it is entirely appropriate for the program to subsidize plants that burn fuel more cleanly.

Among the plants seeking subsidies under the U.N. program is a $4 billion plant currently under construction in the Western Indian state of Gujarat. When it is finished in 2012, it will be one of the biggest coal-fired plants in the world.

Tata says the plant will emit an average 26.7 million tons of carbon dioxide annually during its first decade of operations. That’s 2.8 million fewer tons that the plant would discharge if it used the less-efficient coal-fired technology prevalent in India today. So Tata is asking the U.N. to let it sell 2.8 million carbon credits annually. Given that such credits are selling for about $13 apiece, U.N. approval would translate into about $36 million at current market price.

Tata Power’s application to sell carbon credits is being reviewed on behalf of the Board by a Norwegian auditing firm, Det Norske Veritas. The firm has its doubts about Tata’s bid, arguing that the project has already received funding and is part of an electrification push by the Indian government.

In the past year or so, the CDM board has also approved the sale of carbon credits by 13 big plants in India and China that burn natural gas. Based on projects that have applied to sell carbon credits through 2012, when the Kyoto treaty’s emission caps expire, fossil-fuelled power plants account for only about 7% of the carbon credits market.

The architects of the CDM program hoped it would spark a renewable-energy revolution, prompting a shift away from fossil fuels towards renewable energy. In fact, renewable energy accounts for only about a third of the carbon credits proposed to be issued by 2012, according to U.N. figures.

Concern about the program is spreading in the U.S. Doubts about the validity of some pollution-cutting project in the developing world were one factor in the Senate’s rejection last month of a bill that would have capped U.S. greenhouse-gas emissions.

Source: WSJ, 15/07/08

A second EPR

On Thursday 3 July, 2008, President Nicolas Sarkozy announced that France will build a second of its new-generation nuclear reactors. A decision about where to build the second French EPR will be made in 2009, with construction expected to begin in 2011.

France has been construction its first European Pressurized Reactor, or EPR, on the Normandy coast, with the unit expected to go into service in 2012. The Normandy site is one of only two EPRs in the world currently under construction: the other is in Finland.

Source: WSJ, 04/07/08