# Power Grid

I was struggling to write a post about PV solar panels (the struggling part came in while trying to describe the quantum mechanics that take place), and realized that I need to describe how our power grid works in far greater detail than I had before. What follows is the gory details about how power is transmitted to your home. This is important because while solar power costs 5x as much as coal on the wholesale market, it only costs about 2x as much as coal at your house. Sometimes less. This is because coal-powered electricity is wheeled and dealed through several players as it reaches you, and is marked up every time. Solar power dumps straight into your home. Some of you are gonna love this article, others have already closed it.

On a logistical note, I haven't posted in the last two weeks cause I am too busy with life things to write both the blog and play computer games. Computer games sometimes win out. Thanks, X-Com: Enemy Unknown.

Generators, LSEs, Home Energy

Generators are all the different types of power plants we have discussed. They produce power, and in a deregulated market, sell the power to the grid. They are given a price based on demand. We have discussed how each power plant will "bid in" a day ahead and say how much power they can produce at which prices. As more power is demanded, the price will rise to bring more expensive power online. No matter what the power plant bids in, if they are online, they will get the per-MWh payment of the most expensive plant to come online. In other words, the marginal cost of energy production is what each power plant gets paid per MWh. If an expensive power plant is brought on-line for $1000/MWh, for instance, every single plant that is operating will receive that. Okay, we have also seen the cost to produce power in several posts. It makes sense to repeat it here. U.S. AVERAGE LEVELIZED COSTS (2011$/MEGAWATTHOUR) FOR PLANTS ENTERING SERVICE IN 2018
PLANT TYPE CAPACITY FACTOR (%) LEVELIZED CAPITAL COST FIXED O&M VARIABLE O&M (INCLUDING FUEL) TRANSMISSION INVESTMENT TOTAL SYSTEM LEVELIZED COST
Dispatchable Technologies
Conventional Coal 85 65.7 4.1 29.2 1.2 100.1
Advanced Coal 85 84.4 6.8 30.7 1.2 123.0
Advanced Coal with CCS 85 88.4 8.8 37.2 1.2 135.5
Natural Gas-fired
Conventional Combined Cycle 87 15.8 1.7 48.4 1.2 67.1
Advanced Combined Cycle 87 17.4 2.0 45.0 1.2 65.6
Advanced CC with CCS 87 34.0 4.1 54.1 1.2 93.4
Conventional Combustion Turbine 30 44.2 2.7 80.0 3.4 130.3
Advanced Combustion Turbine 30 30.4 2.6 68.2 3.4 104.6
Advanced Nuclear 90 83.4 11.6 12.3 1.1 108.4
Geothermal 92 76.2 12.0 0.0 1.4 89.6
Biomass 83 53.2 14.3 42.3 1.2 111.0
Non-Dispatchable Technologies
Wind 34 70.3 13.1 0.0 3.2 86.6
Wind-Offshore 37 193.4 22.4 0.0 5.7 221.5
Solar PV1 25 130.4 9.9 0.0 4.0 144.3
Solar Thermal 20 214.2 41.4 0.0 5.9 261.5
Hydro2 52 78.1 4.1 6.1 2.0 90.3

So the cost to produce is the total system levelized cost (and now you should realize that producing power for $1000/MWh is ridiculously high. Except it has happened recently and momentarily in New England). People at home don't see the price that a generator gets. Do you notice that you pay about 20 cents per KWh in MA (I use MA cause apparently all my readers are here), it is$200 per MWh. What gives? All these power plants are producing power for way less than that. Except for solar thermal and offshore wind, which both suck and are expensive.

The reason for this is that home/commercial retailers do not buy from the generators and from the wholesale market. Things called Load Serving Entities (LSEs) buy from the wholesale market. Often they will just be your utility company. They then distribute it to end-users or to other complicated things that we don't care about. The end users are your households and commercial things like shopping malls and stores and offices.

Sidebar: One important thing to note is that industry usually buys directly from generators. So while we pay $200/MWh for electricity, a Ford power plant might pay$60/MWh. This has implications that we will discuss later.

So, the LSE buys electricity off the wholesale market. And then marks it up and sells it to consumers. That is why you pay $200/MWh. RTOs, system management This section is getting specific, some of you may want to skip to the end of the article, the implications part. Who tells generators when to come online and manages the wholesale market? Regional Transmission Operators. In New England, our RTO is called ISO-NE, for Independent System Operator of New England. They take bids and determine which power plants produce. They have important things to consider, like making sure a regional power line isn't too congested. Line Losses Nearly all power lines lose a percentage of their power as heat. Transmitting long distances loses around 8% of power. This is because there is always some resistance to the flow of electricity. It is like friction for the flowing of electrons. Power lines also have a limit to how much power can flow through them. If you try to go past the limit, they heat up rapidly and lose a ton of power. The latter is something that the RTOs manage, to make sure that there won't be problems. The former has massive implications for renewable energy. Most of our renewable energy is wind and solar. Like wind in the sparsely populated midwest. And solar in completely unpopulated deserts. Transmitting this power to cities incurs huge line losses. With current capabilities, transmitting power from Iowa wind farms to NYC would make power more expensive than just building the wind farm near NYC, despite that wind in NY sucks (heh, punny). I don't have a source for this, I just saw it at a talk at Harvard. Implications for installing renewables at home, commercially, and in industry We pay$200 per MWh of power as residents in Boston. Solar PV in the best cases is $144. This will be in deserts. In MA, we don't get as much sunlight. But for the sake of argument, lets say that the average cost of solar in MA comes out to be$200-$250. With subsidies, it will be less. So would you pay$200 per MWh from your utility, or $200 per MWh to produce your own energy and stick it to the man? Also your own power would be clean, with far less CO2. With subsidies available in places like MA and NJ, solar comes out to less than$200/MWh at home.

Next lets consider commercial places. They also buy from LSEs. This is why you see a ton of them building solar panels. It makes sense economically and gives them a good vibe that the public likes.

Finally, let's consider industry. They buy directly from the wholesale market. So they pay closer to $100/MWh. They won't give two shits about renewables. Because they won't save money by installing renewables on their sites. And this, my friends, is the trend we see. On-site renewables are adopted by commercial real estate and by residents, and industry is highly unlikely to ever embrace it. Interesting, eh? Thanks for reading! -Jason Munster # Solar Power Solar power. It comes in two primary flavors: photovoltaics (PV) and concentrated solar power (CSP). The latter is easy. I decided to do solar power this week, and go back to the dams next week. Big picture: CSP is a bridge technology at best; an investment in most places is little more than a show that the investor is serious about green tech. Moreover, not all places are created equal to invest in solar power. Many of the places that offer the best incentives to have solar power (NJ, MA, Germany) are far from the best places to have solar power. So this time: insolation, what it means, where it happens. And CSP. PV comes later. Cause it involves quantum mechanics. So, first, solar insolation map, AKA "Where is the sun shining all the time" map. Solar power resources in the US. Darker colors indicate better regions for solar power. Who is not surprised that Alaska is awful for solar power? But check out MA and NJ. Why are they giving tax breaks to install solar cells? Easy answer. To drive the technology forward. Solar panels are really useful in places without any other power source. Like small villages in Africa and other depopulated places. California also has big incentives to build solar, and at least that makes sense, yes? What determines how much insolation a place gets? Well, you need sun to have solar power. The sun doesn't come out to party at night, so no solar power. A huge one is how much atmosphere the sunlight has to pass through on the way to the the solar panel. More atmosphere means more absorption and dispersing of sunlight (the atmosphere reflects, absorbs, and spreads out sunlight). So higher elevation, like mountains, helps. Less atmosphere. On a related note, the latitude is also very important. Far northern places don't get as much sun annually (Canada, Alaska). Finally cloud and moisture make a huge difference. If there are clouds or moisture in general, sunlight is blocked. This explains most of the east coast of the US, as well as why Nevada, a giant desert, has great insolation. It has a high elevation, and no moisture to make clouds or block sunlight. The equivalent amount of sunlight hitting the earth at a high latitude spills out over a larger area. In other words, there amount of energy per area is lower. link CSP is easy. There are a bunch of mirrors, either flat or parabolic (to focus the light even more intensely), and they reflect light to a single point. It produces heat and and then that heat is used to make steam and drive a turbine, just like the basic thermal power plants we have discussed. The heat is typically stored in molten salt, cause it can store a whole lot of energy before it rises a degree in temperature (kind of like water). The heat from this molten salt is slowly released to make that steam for the thermal part. CSP in action. Lots of light reflected to a single point that then gets very hot. link. Given that some places on Earth receive upwards of 500W/m directly to the surface (assuming no clouds, no pollution, and daytime), a CSP plant that is 500m*500m could produce 125MW of power. Sounds great, right? 'Cept we know from basic thermodynamics that a thermal power plant that this thing is likely going to be 30% efficient. So something with a quarter of a square kilometer footprint might produce 40MW of power. So why don't we use this? First, the depiction above is too rosy a picture. CSP is not all that efficient, because if you look at the picture above, you see that not all the area is used for gathering light. There are plenty of empty spaces. Moreover, the transfer of heat from the salt to water is not very efficient. Cause the high temperature and low temperature of the Carnot cycle are closer together (review the thermal power plant post for a review of Carnot efficiencies for all heat engines). Finally, this stuff is expensive. It is easily 2x as expensive as almost any other power technology (other than PV). It requires water to clean the mirrors and has other maintenance costs, the mirrors themselves are quite expensive, and the entire design is expensive. And, if you want to harness the power of the sun, there are better alternatives. Like PV. As you can tell, I don't have a very high opinion of CSP. Why is that? Take a look at this guy again: U.S. average levelized costs (2011$/megawatthour) for plants entering service in 2018
Plant type Capacity factor (%) Levelized capital cost Fixed O&M Variable O&M (including fuel) Transmission investment Total system levelized cost
Dispatchable Technologies
Conventional Coal 85 65.7 4.1 29.2 1.2 100.1
Advanced Coal 85 84.4 6.8 30.7 1.2 123.0
Advanced Coal with CCS 85 88.4 8.8 37.2 1.2 135.5
Natural Gas-fired
Conventional Combined Cycle 87 15.8 1.7 48.4 1.2 67.1
Advanced Combined Cycle 87 17.4 2.0 45.0 1.2 65.6
Advanced CC with CCS 87 34.0 4.1 54.1 1.2 93.4
Conventional Combustion Turbine 30 44.2 2.7 80.0 3.4 130.3
Advanced Combustion Turbine 30 30.4 2.6 68.2 3.4 104.6
Advanced Nuclear 90 83.4 11.6 12.3 1.1 108.4
Geothermal 92 76.2 12.0 0.0 1.4 89.6
Biomass 83 53.2 14.3 42.3 1.2 111.0
Non-Dispatchable Technologies
Wind 34 70.3 13.1 0.0 3.2 86.6
Wind-Offshore 37 193.4 22.4 0.0 5.7 221.5
Solar PV1 25 130.4 9.9 0.0 4.0 144.3
Solar Thermal 20 214.2 41.4 0.0 5.9 261.5
Hydro2 52 78.1 4.1 6.1 2.0 90.3
Solar thermal is expensive. And the capacity factor is junk. There are places for it, but those are so few that it is not worth further exploring this technology.
That's it for now. Thanks for reading!
-Jason Munster

# Hydro Power

Hydroelectric Power is pretty simple, yes? Build a dam, run water through turbines, get energy out. Turns out that it is a bit more complicated that that. But not by much, actually. So I am going to do a quick summary of how hydropower works, the environmental disaster that it can be (always with the tradeoffs, eh?). I was going to profile three major power plants: Hoover, Grand Coulee, and Three Gorges. But I ran out of space. Next week we will discuss pumped hydro to make the biggest batteries on the planet, and also these three dams in details.

Hey! Finally! A picture I took myself! I was at the three gorges dam as they were just completing it. Also, China has air pollution issues.

How does water power work? Put simply, water falls from a height and the energy of it is harnessed by spinning a turbine. More complicated, it is mass*gravity*height:



Schematic cross-section / block diagram of a hydropower plant. link.

Now we also need to round down for efficiency. Our thermal power plants are limited by carnot efficiency, yes? And even the best don't really break 50% efficiency all that easily. What would you guess the efficiency of a hydro plant turbine is, then?

That depends on the type of turbine used. It turns out that turbines are some of the most efficient parts of any generating facility. In short, expect these guys to have 90%+ efficiency, probably closer to 95%. Different styles are used depending on the height of water drop (water moving really fast from a half-kilometer drop will have very different dynamics than water moving from a 20m drop).

The general design of a hydropower turbine. Water flows through the blades and the generator is, in turn, spun quickly. link

So let's figure out how much water we need to move to make 100MWh of electricity from a 200m drop! Now 1 MWh is  , so 100MWh 





 of water needs to be moved. In other words, it takes 18 thousand kilotons of water movement to produce 100MWh. Or, looked at another way, 18,000 cubic meters of water. Still not following? It's about 8 olympic sized swimming pools worth of water. Dropping 200m. Or 1/8 a mile, for you Americans out there that don't play in Metric.

Hokay, enough maths for now. This sounds great, right? Why don't we build these things everywhere? When I take courses on how to fix the environment, there are always a majority of people that assume we can build more hydro power plants. But we can't in the US. Why not?

Well, it turns out that you need to have a large height drop to make this work. You also need a lot of water flowing into whatever reservoir is behind the dam, a ton of land behind that dam to flood, and you also need enough high terrain behind it so the water doesn't spill out everywhere. Moreover, you need a massive height difference between the upper reservoir and lower reservoir to make it work. Example: the Amazon river has a huge % of total world river flow, but we can't get electricity out of it, cause the elevation drop of it is so tiny. In short, there aren't a ton of places where where hydro works well. And imagine if a few people live there. Most aren't gonna take to kindly to their homes being put under tons of water. But you know where this can happen? China! They moved 1.3 million people to build Three Gorges. More on that later. Also, Africa has a ton of places that are building dams. Turns out that China is funding a lot of these. Cause China is starting to do humanitarian things internationally to make allies with the countries that will be the source of most world growth over the next 50 years. Upsides and downsides of a command economy, right?

Hokay, I got distracted there. Environmentalists don't like dams because they mess up fish migrations, destroy natural habitats, destroy the landscape in general, and in many countries, since hydro power is so cheap, heavy industry moves in next to them to get the cheap electricity. China is a great example (sorry I keep using you as an example, China, but I haven't read about other countries much). Along many rivers, supposedly clean hydro power goes in, only to be followed by very polluting industries. Rivers turn funny colors, the water is terrible to drink, and you can't see the sun through pollution on several days. This is getting better, cause China is making the middle-income transition, and citizens are demanding safer living environments.

I got distracted again. Other problems with dams? They tend to be on rivers. Rivers carry sediment. Much like wind can pick up grains of sand and throw then around, rivers do the exact same thing. They carry a lot of sand in them. But when they hit a damn, the river stops. The sediment load drops to the ground. After several decades, sufficient sand has dropped to clog the dam. Adding to this problem is that these sediments have a bunch of heavy metals that have been leached from the local environment. In short, a hydro dam leaves behind a mess that is quite hazardous. Cleaning it up can be difficult. Still, hydropower doesn't cause many deaths, unlike coal-fired power plants.

Focusing on that last point, what does hydro power not produce? CO2. Mercury. SO2. NOx. It produces none of the nasty things that coal fired power does (even gas-fired plants produce NOx and CO2). It tends to be very inexpensive. It is much prettier to look at a hydro plant than a coal, gas, or nuclear plant (Except on a polluted day in China, look at that picture again!).

We are running out of space in this article (I am calling them articles cause I am pretending they are articles on a web page instead of a blog post, cause I am pretentious). To summarize, hydro power is cleaner than other power supplies. It is cheaper than most. It does have its drawbacks, including displacing people and destroying land, but these are smaller than the drawbacks of coal and natural gas. It is also a nearly completely tapped resource in the US.

-Jason Munster

End-note: if you have a lot of interest in this sort of thing discussed here, I would highly suggest the book When A Billion Chinese People Jump by Jonathan Watts. It is an amazing book

.