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A quarter of America could experience LONG BLACKOUTS this winter due to energy supply problems

November 22, 2022

Image: A quarter of America could experience LONG BLACKOUTS this winter due to energy supply problems

(Natural News) Large parts of North America could face long blackouts and other energy emergencies this winter as supplies of natural gas and coal begin to tighten.

According to the latest seasonal assessment of the North American Electric Reliability Council (NERC), a large portion of the North American [bulk-power system] is “at risk of insufficient electricity supplies during peak winter conditions.”

The regional grids with the largest risk of experiencing supply shortfalls this winter are in Texas, New England, the Carolinas and the central system stretching from the Great Lakes region down to Louisiana.

The NERC’s report noted that supply shortfalls, higher peak-demand projections, weaknesses in natural gas infrastructure and inadequate weatherization upgrades for generators are contributing to the heightened risk of power outages.

The risk would be further worsened by severe weather putting stress on these already weakened grids by causing demand for electricity to soar while supplies of energy coming from natural gas, coal and backup fuels like oil remain low. (Related: In the middle of a global energy crisis, Joe Biden promises to SHUT DOWN COAL PLANTS all across America.)

“The trend is we see more areas at risk, we see more retirements of critical generation, fuel challenges and we are doing everything we can,” said NERC Director of Reliability Assessment John Moura. “These challenges don’t kind of appear out of nowhere.”

Electricity bills to go up in winter

NERC’s warning for the coming winter notes that around a quarter of American households will also see their already high utility bills soar even higher this winter as demand for power shoots up.

…click on the above link to read the rest…

Citi: Soaring Energy Bills Raise Chances Of Windfall Taxes In Europe

May 24, 2022

Citi: Soaring Energy Bills Raise Chances Of Windfall Taxes In Europe

  • Gas and electricity bills in Europe could jump to 4.5 percent of household disposable income in 2023.
  • Rising utility bills raise pressure on politicians to implement windfall tax.
  • Rising energy commodity prices weigh most on Eastern European countries.

The higher the energy bills in Europe become, the higher the chances are for a windfall tax on energy companies and utilities, as governments will be forced to ease the growing pressure on household finances, Citigroup says.

Europe as a whole could see a utility bill rise of over 3 percent of gross domestic product (GDP) through 2024, Citigroup Global Markets analysts Piotr Dzieciolowski, Jenny Ping, and Antonella Bianchessi wrote in a note on Monday carried by Bloomberg.

Gas and electricity bills in Europe could jump to 4.5 percent of household disposable income in 2023, up from 3.5 percent in 2021. The utility bills could further rise to 4.8 percent of household disposable income in 2024, according to Citi analysts.

In countries in Eastern Europe, where the prices of commodities account for a larger share of bills, the disposable income is likely to shrink the most, the investment bank says.

Per a Citi survey, one-quarter of respondents across Europe aged 18 to 29 say they would not be able to pay their bills on time if bills rose by one-tenth.

Bills have been surging in Europe since the autumn of 2021 when the natural gas shortage led to higher gas and electricity prices. The Russian invasion of Ukraine further strained household income as utility bills surged with the skyrocketing commodity prices.

Spain and Portugal set a cap on the price of gas used for generating electricity, after the EU allowed them to do so, acknowledging their exceptional energy requirements.

…click on the above link to read the rest of the article…

Soaring Food & Energy Costs Spark Rebound In Producer Prices

June 11, 2020

Soaring Food & Energy Costs Spark Rebound In Producer Prices

Producer Prices rebounded MoM in May with headline Final Demand PPI rising 0.4% (against +0.1% exp) but it left PPI YoY still down 0.8%…

Source: Bloomberg

Some serious dispersion in the various sector’s price swings…

This rebound was driven by a record surge in food prices…

Source: Bloomberg

Two-thirds of the May increase in the index for final demand goods is attributable to a 40.4-percent jump in meat prices.

Source: Bloomberg

The indexes for gasoline, processed young chickens, light motor trucks, liquefied petroleum gas, and carbon steel scrap also moved higher.

Source: Bloomberg

Conversely, prices for chicken eggs fell 41.2 percent. The indexes for diesel fuel and for plastic resins and materials also decreased.

What will Jay Powell do now that average joe’s cost of living is soaring?

Core CPI Crashes By Most On Record; Food Costs Soar As Energy & Apparel Collapse

May 12, 2020

Core CPI Crashes By Most On Record; Food Costs Soar As Energy & Apparel Collapse

Headline Consumer Prices fell 0.8% MoM – the biggest drop since 2008 – as soaring food inflation was dominated by plunging energy, apparel, and lodging costs…

But it was Core CPI, printing 0.4% MoM that made the headlines. That is the biggest monthly decline since records began in 1961…

Under the hood, the changes were dramatic to say the least…

A 20.6-percent decline in the gasoline index was the largest contributor to the monthly decrease in the seasonally adjusted all items index, but the indexes for apparel, motor vehicle insurance, airline fares, and lodging away from home all fell sharply as well.

Goods deflation is accelerating as Services inflation is slumping…

In contrast, food indexes rose in April, with the index for food at home posting its largest monthly increase since February 1974.

Shelter Inflation up only 2.61%, down from 3.01% in March, and the lowest since Feb 2014. Rent inflation up 3.49%, down from 3.67% in March but lowest only since Jan 2019.

Given the near total lockdown of the US, we do question just how “real” this data is (and the fact that rent strikes, mortgage forbearance, food banks, UBI, PPP, and you name the acronym have distorted all the inputs).

“This Is Blowing Up:” Texas Energy Costs Hit Record High Monday As Heatwave Strikes

August 13, 2019

“This Is Blowing Up:” Texas Energy Costs Hit Record High Monday As Heatwave Strikes

Power demand in Texas hit a record high on Monday as consumers turned up their air conditioners to escape a heatwave that is boiling much of the southern Plains over the next 7-10 days.

“A large ridge of high pressure has anchored itself across the southern Plains over the last 7-10 days, promoting significant heat across Texas. As of Tuesday morning, Dallas has reached 100°F each of the last 4 days, while Houston’s Intercontinental Airport has hit 101°F each of the past 5 days. Generally speaking, warmer than normal temperatures will continue for the foreseeable future across Texas,” said Meteorologist and owner of Empire Weather LLC., Ed Vallee.

According to the Electric Reliability Council of Texas (ERCOT), who operates the electric grid and supplies energy to more than 25 million customers, representing 90% of the state’s electrical load, reported that demand surged to 74,531 megawatts (MW) at 5 p.m. CDT on Monday and could reach 75,000 MW on Tuesday. Reuters notes that the all-time high was 73,473 MW on July 19, 2018.

How the Drop in Oil Prices Impacts the Junk Bond Market

ERCOT has 78,000 MW of generating capacity. As demand continues to reach critical levels, the grid operator could issue warnings to customers advising them to reduce energy.

ERCOT Houston MW-hour jumped from $25 to $603 on August 12, a +2,237% move in 1,440 minutes.

“This is blowing up, David Hoy, a trader at Dynasty Power, told Bloomberg, “That should be the highest price of the year so far.”

Meteorologist Vallee said air temperature and humidity across the region could make temperatures feel closer to 110 through the week.

In comparison to other grid operators across the country, ERCOT Houston is experiencing the most significant spikes in energy costs this week. 

 …click on the above link to read the rest of the article…

9 Ways You Can Save BIG On Energy Costs This Winter

October 27, 2018

9 Ways You Can Save BIG On Energy Costs This Winter

Heating your home during the winter can be costly and many don’t have the extra money to pay for the uptick in energy costs.  But we’ve come up with a few tips and tricks to help you save your money on energy and use more sustainable ways to heat your home.

Not only can a reduction in the amount of energy you use lower your impact on the Earth, but it lowers the impact on your wallet, freeing up some funds for emergencies or for other uses. In a 2013 survey, 10 percent of renters who participated in a Rent.com poll said that utilities are their biggest monthly expense, coming in third after monthly rent and groceries. And just heating your living spaces accounts for about 48 percent of your home’s total energy bills, according to the U.S. Department of Energy.

None of the things listed below will require a big investment, but they should help you notice a little relief when your next energy bill comes.

1. Use the sun for free heat: That burning bright orb in the sky should be the focus of temperature control in your residence throughout the year, even in summer. However, once winter rolls around, open the curtains on your south-facing windows during the winter days to bring free heat into your home. Close your window coverings when the sun goes down to keep the heat locked inside.

2. Use a programmable thermostat: Save up to 10 percent on your heating costs per year by setting your thermostat 7 degrees to 10 degrees lower for eight hours a day, says Energy.gov. Set it and forget it by using a programmable thermostat.  This works especially well if you are at work during the day.

…click on the above link to read the rest of the article…

Estimating life-time costs for Renewable Energy in Europe

March 30, 2016

Estimating life-time costs for Renewable Energy in Europe

Summary
  • Electricity generation by using gas-fired installations is significantly cheaper than Renewables in terms of both installation capital cost and Operation and Maintenance  costs, even when accounting for the cost of fuel.
  • The € 1.1 trillion capital costs already spent on Renewables in Europe would have been sufficient to re-equip the whole 1,000 Gigawatt European electricity generating fleet with Gas-fired power stations producing electricity for the grid effectively at ~90% capacity.
  • The European Renewable fleet with a nominal nameplate output of ~ 212 Gigawatts only contributes ~ 38 Gigawatts to the European Grid, a capacity percentage at about 18%.
  • The installation of the Renewables fleet as of 2014 has already lead to a 60 year lifetime financial commitment amounting to about €3.1 trillion:  this is equivalent to the annual GDP of Germany.
  • 60 year life-time costs of Onshore wind power range from 10 – 13 times more expensive than Gas-fired generation.
  • 60 year life-time costs of Offshore wind power and Solar power range from 40 – 50 times more expensive than Gas-fired generation.
  • during the 60 year life-time Gas-fired generators have a full-time productive capacity of about 90%  whereas the combined capacity figures for Renewable Energy of only about 18% is achieved across all European Renewable installations.
  • These notes make estimates of:
    • the likely capital expenditure over 60 years
    • the running costs including fuel costs, if applicable, over that time period
    • the likely combined 60 year costs overall
    • the ratios of Renewable financial performances compared to Gas-fired electricity generation.

Introduction

This article is concerned with the two main forms of weather-dependent Renewable Energy, Wind Power (Onshore and Offshore) and Photovoltaic solar power.

Screen Shot 2016-03-04 at 10.22.31.png

It accepts that the effective capital cost of weather-dependent Renewable installations range from 16 – 63 bn€ / Gigawatt for the electrical energy produced when their capability for productive contribution to the grid is taken into account.  This compares with the installation cost of Gas-fired electricity generation of about 1bn€ / Gigawatt, produced for the grid.

…click on the above link to read the rest of the article…

Is the slowdown in productivity growth a result of energy costs?

May 25, 2015

Is the slowdown in productivity growth a result of energy costs?

Slowing productivity growth in the United States has been in the news in recent months. It has become a concern to policymakers because they believe it is one of the primary contributors to a middle-class economic squeeze according to the annual report of the White House Council of Economic Advisors.

Simply put, productivity growth refers to the growth in economic output per worker or more precisely, per hour of work. When this growth slows, the potential for real wage increases diminishes since the growth in wages typically reflects the ability of workers to create more output per unit of time.

To the obstensibly naive observer the following idea may seem a plausible explanation: Higher-cost energy inputs into the production of goods and services reduce productivity growth because the economic output per dollar of energy consumed declines. And, though energy inputs aren’t the only thing to consider, they are important. The high energy prices of the last decade or so may be, in part, responsible for low productivity growth. (Conversely, low energy costs would imply more output per dollar of energy consumed.)

But strangely, almost all economic models for productivity consider only so-called “tangible” factors, that is, labor and capital. In the bizarro world of modern economics, energy and materials are not considered “tangible.”

Now, the way in which that productivity growth which is attributable to “technological advances” is typically calculated is to add up contributions to productivity growth from labor and capital (machines, buildings, vehicles, tools of any kind) and then subtract this sum from the known amount of total productivity growth. What is left is the so-called “residual” which is presumed to result from “technological advances” caused by increases in human knowledge. These advances and the increases in capital per worker are assumed to be the drivers of productivity growth.

…click on the above link to read the rest of the article…

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