Climate Change
April 4, 2011
Increasing Oil Prices is the biggest Achilles Heel of the Indian Economy heavily dependent on imported oil products.The government will have to either raise the prices leading to adding fire to the already high inflation or compensate the badly bleeding half privatized Oil Companies like IOC,BPCL and HPCL.These companies generally make massive losses despite having private investors apart from the government.Compensating these losses would lead to a higher fiscal deficit which would add to the inflation pressures anyway.Note a recent survey revealed that the Indian Middle Class has cut its expenditure on shopping,eating out and entertainment by a whopping 65% due to the high inflation.However the Indian Stock Market has seemingly discounted all these factors going up by 10% in 10 days on the back of a global rally.Bernanke Fueled Cheap Money is Circulating Hungrily across the Globe and currently India seems to be the fashion trend of the month.Note these hot money flows can reverse equally quickly leading to a sharp market crash just like the Jan-Feb one as fundamentals hardly support this kind of rally.With government intervention and distortions becoming the overriding factor in the stock markets,Free Markets and Fundamentals have taken a backseat.
April 4, 2011
Climate Change and Global Warming have been put in the Cold Storage by most world governments as there is little will to fight one of the most pressing challenges facing mankind.With the successive Copenhagen and Cancun Climate Change Meets coming up as croppers,the Poor are left to fight the drastic affects of Climate Change in the face of Severe Weather like Droughts,Floods,Increase Sea Levels.Australia stupidly cut the funding for various Green Programs after facing one of the worst floods in the last century.It did not occur to the short term focused politicians that the Floods may have their root cause in Global Warming.Instead of increasing resources to fight Climate Change,they cut the Funding to help in the Flood Rehabilitation Programs
April 2, 2011
The strict environmental regulations of EPA is leading to converion of a Virgina Coal Plant to a Biomass Fired one.Note the US Congress and Senate have failed to move ahead on climate legislation remaining hopelessly deadlocked on any climate deal.Despite numerous draft laws,no common law has been passed as Republicans fail completely in understanding global warming remaining in the pockets of the powerful oil and gas lobby.EPA remains the only government body which is doing something to reduce pollution and at the same time fight for climate change.The strict new rules against emission of harmful gases like sulfur dioxide,nitrous oxide,mercury has forced a Virginia Coal Plant to convert from thermal to biomass.
March 31, 2011
Hydroelectricity is one of the largest sources of energy accounting for roughly 20% of the worldwide demand of electricity with around 800 GW of capacity installed.There is considerable potential still left and developing countries like India and China can be expected to install another 500 GW over the coming years.Hydroelectricity is very important as it does not lead to GHG emissions and contribute to global warming.It also does not have the drawbacks like other renewable energy forms of high costs and intermittency.The advantages of hydroelectricity are substantial enough to far outweigh any disadvantages.But like nuclear energy,hydro power has some tail risks which can lead to catastrophic damage.The costs of hydroelectricity are not a simple function of dollar costs.It should also take into account the massive displacement costs in case of massive hydro dams,the loss of ecology and potential tails risks which can lead to massive payments.
March 31, 2011
Obama's outlined a New Energy Policy as he periodically does without any far reaching national goals on to reduce America's dependence on billions of barrels of imported oil which cause global warming,finance terrorist and prop up brutal regimes in the Middle East.However his periodic bursts of rhetoric on the US Energy Policy is nothing but a lot of empty gas without any specifics.Earlier he used to stress on nuclear energy which has been thrown out of the window with the Fukushima nuclear disaster.His plans of supporting the nuclear energy industry with $36 billion in DOE loans seems a bad if not a gruesome joke.Similarly last year his plans of allowing offshore drilling for Oil also fell flat after the massive BP Oil Spill ecological disaster.
March 29, 2011
Hydroelectric Dams have disadvantages which are quite different from those of other forms of renewable energy like solar, wind, geothermal or nuclear energy. Hydro Power in […]
March 29, 2011
The world's total electricity generating capacity is around 4500 GW (2007 figures) which is expected to increase by 1.7% each year to rise to 7000 GW by 2035 according to EIA.USA is still the world's largest electricity producing country with more than 20% of the world's power capacity with around 1 Terawatts of Electricity Capacity.China has been rapidly adding capacity in the last decade and the second biggest electricity producing country with more than 700 GW more than 70% of which is from coal fired power plants.Japan,Russia and India are No.3,4 and 5 on the list with 280 Gw,220 GW and 159GW respectively.Europe is the third largest region in terms of electricity capacity with more than 800 GW.India is rapidly increasing capacity and is projected to be the No.3 in the list by 2020 as it looks to more almost treble its current electricity capacity of around 150 GW (in 2007).
March 28, 2011
British Petroleum (BP) the multi billion dollar Oil and Gas Conglomerate is a strange player in the Renewable Energy Sector of Solar Energy.BP was a dominant company amongst the top 10 global manufacturers of solar panels till a few years ago.However the lack of interest on the part of management,low investment,lack of R&D has made it a bit player in the fast growing solar panel market.Companies which did not exist till a few years ago have outpaced BP to become top solar panel producers.However BP Solar Panels continue to sell in a number of market because of existing sales relationships and brand name.However it is only uneducated and uninformed consumers who are buying BP Solar Panels in my opinion.BP Solar Panels should be avoided both from an economic point of view and from the environment perspective.
March 19, 2011
Coal Mines in Indonesia,Australia,Africa and North America are selling like hot cakes as Indian,Chinese companies as well as mining conglomerates like Rio Tinto,Vale,BHP Billiton fight to secure raw materials.Note India and China are consuming huge amounts of coal to power their thermal plants.While China consumes a monstrous 3 billion tons,Indian demand is rising at more than 10% a year though on a smaller base.Coal is the cheapest form of power despite its polluting and health hazardous affect.Though Coal Plants in Developed countries are becoming much more expensive to build due to taxes and opposition by environmental groups,there is no stopping their furious growth in countries like China and India.Though India too faces some environmental opposition,massive ultra mega power plants with capacity of 4000 MW are getting built by new Indian private utilities
March 19, 2011
The United Nations has voted on enforcing a "No Fly Zone" in Libya as Colonel Gadhaffi's forces backed by aircraft and artillery have bombed their way to a winning position in Libya.The democratic protests in Libya has been violently suppressed by the despotic regime over there which has appeared at times as mad and lunatic.The rebels despite popular support have been cowed down by the massive military power of Gadhaffi and his mercenaries.This has finally made the United Nations Security Council decide on attacking Libyan army by Air and enforcing a "No Fly Zone'.Note this has been done despite misgivings by China and others who abstained.However the West led by France has been adamant on helping democracy.
March 16, 2011
Geothermal Energy is regarded as a poor cousin to its more glamorous cousins Wind and Solar.Geothermal Energy Capacity has been installed and the growth rate is a pathetic 3-4% compared to the over 50% CAGR seen for solar energy and around 30% for Wind Energy.However Geothermal Energy possesses one attribute that the others do not.Its 24 hour generation capability is a massive plus compared to the intermittent nature of Wind and Solar Energy.However long project development time and large capital investments have deterred fast growth in geothermal energy in the world.However some countries like Iceland,Indonesia,Philippines and USA have a strong geothermal energy industry.Note Geothermal Energy has massive use as a heating source for homes and offices,however this article mainly talks from the view of Electricity Generation.
March 16, 2011
The situation at the Fukushima Dai-Ichi power plant continued to be desperate as new fires and explosions rocked the nuclear plant.The utility which owns and operates the Nuclear Reactors Tepco said that the containment structure may have been damaged as smoke was seen from top of one of the reactors.70% of the Fuel Rods at Nuclear Reactor 1 and 33% at Reactor 2 have been exposed.This means that these fuel rods are not being cooled and may be melting leading to increased radiation poisoning hazards.New Fire broke out on the morning of 16th March at Reactor No.4 and containment chamber at Reactor 2 is damaged from Reactor 2.The problems at the Nuclear Plant seems to be increasing with no solution in sight.What is worse is that the 2 reactors No.5 and 6 which have been dormant all this time have all seen their temperature .increasing.Temperatures in the spent fuel rod cooling pools of the shuttered No. 5 and No. 6 reactors were rising as of 7 a.m. today to about 60 degrees Celsius (140 degrees Fahrenheit)
March 15, 2011
This Nuclear Energy Disaster in the Age of Twitter and Facebook will vehemently increase the opposition to the setting up of big Nuclear Plants.The Radiation Leak and subsequent health hazards will make it impossible for a Nuclear Reactor to be located except in very remote areas like the Sahara Desert.NIMBY protests are going to almost kill the Nuclear Industry in the next decade at least in democracies.The Nuclear Industry will take a long time in establishing its trust amongst the citizens.Without Nuclear Energy,the other major forms of Renewable Energy ,Solar and Wind Energy have to gain.Already Switzerland and Germany are deferring the planning and extension of Nuclear Energy.Other countries are putting safety reviews.Note the costs of environment regulation and nuclear waste disposal are already quite high.This will make new nuclear plants uneconomical as they are already facing huge cost overruns . Ask Areva in Finland and Constellation in the US.
March 14, 2011
The Japanese Nuclear Plant Explosions would have sent shivers down the throats of everyone living near Nuclear Plants.Note Japanese Nuclear Plants are thought to be one […]
March 13, 2011
Tidal Waver Energy is still an immature technology with most of the plants built around the world being pilot/demonstration ones.However Tidal Wave Energy holds big potential though it is still a decade away from reaching large commercial scale just like Algae based Biofuel and other forms of Green Technology.Tidal Wave Energy essentially works by converting the energy generated by tidal waves into electricity energy.Tidal Generators are used to convert energy from tidal energy into a more useful form.Here are the following ways Tidal Generators are involved in producing Tidal Power.
March 13, 2011
Wind Power has come under attack in the USA focused around the Cape Wind Project off the eastern shore.The project which was conceived over 10 years ago has not managed to still build the Wind Farm due to countless number of lawsuits filed for myriad reasons most of which are quite groundless.However some of the reasons have some solid facts behind the opposition to Wind Energy.Note Wind Energy unlike other forms of fossil fuel energy should have much less opposition however it is not so.Unlike Coal,Gas and Oil Energy it does not lead to increase in Greenhouse Gas Emissions and contribute to pollution.It does not lead to deaths of hundreds of miners each year nor has the danger of a catastrophic nuclear meltdown leading to death and disability of thousands.It also does not have the drawback of massive ocean pollution leading to an ecological disaster.However there are still protests against building of Wind Power Capacity and this article examines them in details.At the outset let me mention that advantages of Wind Power far outweighs the Disadvantages.
March 13, 2011
The Pros of Wind Energy far outweighs the Cons of Wind Power leading to massive amounts of wind power capacity being installed in almost every part of the world.Wind Power already generates majority of the electricity in countries like Denmark and almost 1/5th in countries with proactive renewable energy policies such as Spain,Germany and Portugal.Wind Power has great potential in USA,China and India which are driving the growth of Wind Power in the world.South America particularly Brazil are also showing strong interests in building up wind farms in the country.The recent increase in the price of oil and the dangers of Nuclear Energy further emphasize the importance of Wind Power Energy.
March 9, 2011
The Costs of Biomass Energy Production fall in a very wide range because of the wide variety of feedstock it uses.The costs of biomass energy also depend on the distance of the feedstock from the biomass power plant.Great distances lead to the biomass plant being unfeasible.Also some forms of Biomass are more expensive than others.Urban Waste and Waste Wood are some of the cheapest forms of biomass available.Similarly,Biomass plants also can be built over a wide range of investments.Co-generation plants or CHP plants are the cheapest biomass plants while standalone biomass plants which can use a variety of feedstock are quite expensive in nature.Note unlike solar and wind power,the investments in power plants based on biomass are not fixed.Some of the technology like boilers and turbines for generating biomass energy are common industrial equipment.The costs of a biomass energy can also depend greatly on how the feedstock is procured,managed and used up by a biomass plant.A good manager of a biomass plant is very important to lower running costs of a biomass plant.
March 9, 2011
Biomass Power Plants are increasing rapidly as the costs of fossil fuels go up and the need for renewable energy is increasing.Biomass Power is attractive because of its clean character and supplies a large portion of the energy needs in rural communities.With advancements in gasifier technology and energy conversion,biomass power plants have become quite popular.Biomass Power Plants are increasing in scale from around 20-50 MW to more than 100 MW as the technology has advanced quite a bit.The only problem for these large plants is securing feedstock for these power plants and storing them.Biomass Energy has a number of advantages over conventional forms of energy and depending on the feedstock cost can be generated at prices on par with fossil fuels.Biomass Energy also leads to higher energy security as biomass is almost always secured locally.
March 9, 2011
Biomass Energy is highly under-appreciated as a renewable source of energy despite being the most important source of energy during most of human history.Till the 19th century biomass energy used to account for 70% of the world's energy consumption and still accounts for around 10% of the world consumption.In developing countries the share of biomass energy is still quite high at 30% and it is the major source for energy for rural and backward communities.Biomass primarily consists of
March 8, 2011
India is set to see a massive infrastructure capex cycle over the next decade as the existing infrastructure fails to support India's massive population.$500 Billion is expected to be spent in India's next 5 year plan with expenditure concentrated on roads,railways,ports,water,power,transportation etc.Capital Goods,Construction and Real Estate Companies will benefit hugely from this capex cycle.A Number of Companies have been raising capital from the Indian Stock Markets as India requires massive amounts of capital to fund its ambitious growth plans. Here is the list of top construction companies in India on the basis of their tie-ups with their international counterparts, technological advancements, generating money from the market to trigger their expansion plans and for establishing an entire township in the wastelands and making it the hottest commercial destination.Note Infrastructure companies in recent days have taken a massive beating falling to their 2008 Lehman lows.This is due the the numerous scams hitting the country,delays due to land acquisition,high interest rates and slow execution.However the long term potential of these construction/EPC companies in India remains excellent due to the massive investments.
March 7, 2011
Coal Demand in India is surging as the power companies set up thermal power plants at an astounding rate to triple the power capacity over the next decade.Soaring Coal Prices have already made the Global Electricity Prices shoot up and its probably going to increase more in the coming decade.China is the world's largest producer and consumer of coal accounting almost for the 50% of the world's output at 3 Billion Tons.India is far behind at 400 million tons but will fast catch up given the prodigious rate of power plant building that is happening.The Environment is probably going for a toss as India has allowed "No-Go" Forested Areas to be mined.This plus China and India are importing more and more coal from Australia,South Africa and the USA.The recent looking in Australia saw coal prices shoot up alarmingly.Coal India the world's largest coal producing company recently increased the coal price from its shockingly low price leading cement makers and utilities to raise prices more than 5-10%.While its strange for a green blog to recommend coal stocks,the opportunity does exist over the next 10 years till renewable energy comes to grid parity and policymakers don't come to their senses.Here is a list of coal stocks/companies in India .Note there are not many major private coal companies as in the early 1970s, all privately owned coal producing companies were nationalized under the Coal Mines (Nationalisation) Act.
March 6, 2011
India has around 300,000 Telecom Towers around the country , a large portion of which is not connected to the electricity grid.Another large portion does not have access to reliable electricity implying they have to install backup power systems in order to run without interruptions.Diesel Generators have been the choice of telecom operators despite their high carbon imprint.This is because of the ease of buying and installing diesel generators as well as the lower fuel costs as the government in India heavily subsidizes diesel.Note India's Fossil Fuel Subsidies have led to hundreds of distortions in the economy.Corruption,Pilfering,Adulteration is carried out on a large scale due to government subsidies.In fact a senior government official was burnt alive by the Kerosene Mafia a direct outcome of this subsidy policy.But that is a separate issue.
March 3, 2011
India may uses the planned $500 million to $1 Billion in Coal Taxes it expects to generate every year to build transmission lines for renewable energy.Note one of the main impediments for renewable energy is the lack of transmission capability on part of utilities to move clean energy from remote areas to urban demand centres.USA faces an acute problem in this regard and faces a massive debate on how to fund the power grid from windy areas to cities.India too faces a problem in this regard as renewable energy plants mainly wind and solar are to built in remote locations.Note India's Power Grid is very inadequate as large parts of the country lack electricity due to lack of distribution networks.
March 3, 2011
Solar Energy is the only form of Energy whose costs are continuously declining compared to other forms of Energy.This is one of the biggest advantages of Solar Power over other renewable and non-renewable forms of energy.Solar Energy costs have declined by over 50% in the last 2-3 years even as Coal,Oil,Gas and other Energy costs have gone up.While Wind Energy costs have declined in the last year the overall trend is increasing as the costs of copper and steel go up.This is one of the main reasons why solar energy demand has gone up by 150% in 2010.With solar costs going down by another 10% each year over the next few years,expect Solar Energy to grow at a further fast rate in the future as well after growing at 50% CAGR over the last decade.Here are some of the advantages of Solar Energy over other non-renewable energy forms
March 1, 2011
India's Transport Policy is an unmitigated disaster with traffic congestion frequently killing people.The lack of roads and traffic planning has made transport in Indian cities a daily monstrous headache for commuters.The use of modern transport which does not cause pollution and reduces congestion is the need of the hour.The government seems to be moving slowly in that direction.While MNRE had announced a capital subsidy for Green Transport earlier,the Finance Minister cut excise and custom duties on Green Vehicles as well.India's Union Budget did not have much for the Green Industry except a piffling Rs 200 crore fund for the environment and the cuts of duties for EVs.