Archive for September, 2008

Coal: Part of America’s Blended Energy Solution

This month, Energy
Central
’s featured writer poses another inconvenient truth: we need coal as part of America’s energy solution.

Mark Gabriel, an executive management consultant for R.W.
Beck, carefully lays out the need for America’s coal by looking at our
projected energy demand alongside our means of meeting it, citing a recent
report from the North American Electric Reliability Corporation that shows that
six of 10 U.S. regions will have insufficient electricity capacity by 2009. Says
Gabriel: “No amount of alternative energy can meet the needs in the next 10 to
15 years, even if some huge hurdles such as energy storage are achieved.”

Need a visual? Take a look at this graph, using figures from the EIA’s 2007 Annual Energy Outlook:

Gabriel101


Source:
Energy Information Administration 2007 Annual Energy Outlook
Electricity demand is expected to increase in the U.S. by 1.7% per year
through 2030 requiring an increase in generating capacity of roughly 30%.

On top of
the cold, hard facts, Gabriel delivers a dose of harsh reality for politicians
and coal opponents:

The current aversion to coal is another clear example that politicians
and the public do not recognize the complex nature of our energy enterprise,
its critical nature and fragility. More than 30 coal plants were canceled or
delayed in the U.S. in 2007 at a time when electricity demand was rising making
the total number of canceled or delayed plants over the past two years to 52.

[T]hese cancellations are
rationalized through the mistaken belief that energy efficiency and renewables
can supplant the baseload generation provided by coal and nuclear as well as an
unrealistic reliance on natural gas, which again topped $10 a million cubic
feet in early April, up from $3 just three years ago.

Gabriel’s article underscores the point we’ve been making
all along: coal needs to be part of the energy conversation. It’s our most
abundant, affordable resource and we couldn’t run the country without it. The
sooner we stop making coal part of the problem and get on board with making it
part of the solution, the sooner we’ll get cleaner technologies to market and
reduce our dependence on foreign energy sources.

Read
more
.


The Need for More Power

Here’s a story from Fortune regarding gas shortages in the South.

While I recognize that this particular situation was related to a weather disruption (Hurricane Ike), many experts agree that the high oil prices are clearly the result of growing demand and inadequate supply.  High prices and what we hope for now are temporary supply disruptions could be the harbinger of worse things to come.

But could the same thing also happen with respect to electricity?

Today, electricity demand is growing at twice the rate that we’re adding new capacity. And some groups (along with former Vice President Al Gore) are suggesting that activists take “drastic” measures to prevent the construction on new power facilities that have been granted permits from state and local authorities (and even in some cases have successfully won legal challenges that were lodged by these groups).

The fact is, our electricity needs in this country are growing and we’re going to need new coal-based power plants (along with other energy sources as well). Once people accept the fact that coal will be part of our energy future, we can work together on putting efforts toward supporting R&D for advanced clean coal technologies for carbon capture and storage. That way we can have our cake and eat it too.


Linking security and energy

We said earlier that you can’t talk about national security without mentioning a topic inextricably linked to it: energy independence.

And sure enough… at tonight’s debate, Barack Obama said that we "have to have an energy policy to deal with not just Russia" but other politically volatile and/or unfriendly nations. He mentioned that using American coal can help us become less dependent on foreign energy sources.

To be sure, John McCain agrees. As we’re proud to mention, both candidates know that coal is abundant, affordable and increasingly clean.