REM 350 Midterm Practice Summary PDF

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India to succeed need rapid increase in electricity expanding vehicle ownership india has coal, cement , and steel however, cost of renewable now much lower greater awareness of local air pollution impacts possible threat of carbon global public good Energy 1 joule 1 kwh, btu, calorie Power 1 watt 1...

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India to succeed ● need rapid increase in electricity ● expanding vehicle ownership ● india has coal, cement , and steel ● however, cost of renewable now much lower ● greater awareness of local air pollution impacts ● possible threat of carbon tarifs- global public good Energy 1 joule = 1 newton-metre kwh, btu, calorie Power 1 watt = 1 joule/second btus per hour, horsepower First Law of Thermodynamics (conservation law) Energy/matter can be neither created or destroyed Energy input must equals energy outputs for any transformation (energy conservation) Matter inputs must equals to matter output for every process and must true for each separate element (mass balance principle) Second Law of thermodynamics (entropy law) An isolated system, entropy increase with every transformation. with energy, increased entropy = decrease energy exergy with material, increased entropy = decrease material exergy We don’t consume energy, but rather energy exergy. First Law Energy Efficiency the ratio of useful energy output cannot exceed 100% / total energy input. Second law Energy Efficiency minimum amount of useful energy needed to perform a task compared to the energy input of the device. Open = exchange matter and energy with outside system close = exchange energy only isolated = no exchange like thermos Solar = from nuclear fusion in sun geothermal = from nuclear fission in earth core tidal = gravitational of sun and moon wind -- solar heat hydropower = solar heat biomass = solar light and heat

fossil fuels = biomass from solar

Nuclear Reaction

Gravitational force

nuclear fission

tidal

fossil fuels

geothermal

biomass

hydropower

photovoltaic solar wind hydropower Primary Energy Energy at its point of extraction Secondary Energy Energy that has been processed into an input for end-devices (heat produced for distribution) Tertiary Energy Energy performing useful work at its point of application (heat used in industrial processes) transport, residential, commercial, industrial, agriculture Internal Combustion Engine Nitrogen Cycle Sulphur Cycle Phosphorus (Article) Greenhouse effect the process by which radiation from planet’s atmosphere warm the planet surface above the temperature what it should be. Our planet nowadays contains a lot of radiactively active passes like CO2, methane, etc. These actives has hindered the solar radiation escaping from earth, hence increase the earth’s surface temperature and causing a problem to our eco or living system. Extinction, sea level rise, wildfire, failing crops. 1. 2. 3. 4. 5.

Solar Energy uranium coal gas oil

Resource total stock of a defined element, compound, physical attributes of potential value to humans Reserve Subset of resource, with known precision location, that is technologically feasible and economically profit to exploit. Resource that is easy to exploit by human considered Conventional and vice versa. with innovation and time unconventional resource can become conventional. Mckelvey box Coal Carbonaceous sedimentary rock formed by compaction of partially decomposed plant material. Oil Liquid hydrocarbon formed by dead animal and plants by sedimentary and geological process Natural gas Gaseous hydrocarbon formed from dead animal and plants by sedimentary and geological processes Coal Value depends on its purity ● Highest is metallurgical coal, for making steel ● lowest is for heat and electricity Ranking 1. anthracite (pure carbon) 2. bituminous 3. sub-bituminous 4. lignite (brown coal) 5. peat (form of carbon) Time-Pressure-Heat Oil Conventional oil: oil trapped in porous sedimentary rock. e.g. enhanced oil recovery (~70%)and offshore oil enhanced oil recovery: injection well, pump Unconventional oil e.g. heavy oil, tar sands, shale oil heavy oil= bitumen oil tar sands = mixture of sands, clay, bitumen, water OVER MILLION YEARS *Reserve/Production Ratio Gas Found in sedimentary layers under an impervious rock, sometimes mixed with oil.

Are mostly methane, but also water ethane, butane, co2. Gas processing plants strip to produce market quality. Unconventional gas e.g shale gas, tight gas, deep pressurized gas, coal bed methane, gas hydrates Shale gas: natural gas trapped within shale formation tight gas: produced from rock with low permeabilty. coal bed methane: extraction from coal beds. e.g. india has a lot Nuclear energy released during the rearrangement of nuclear particles. Some of the nuclear mass is converted into heat energy. Nuclear fission the splitting of unstable heavy atom nucleus (uranium) into two lighter nuclei Nuclear fusion (not viable) combining of two light nuclei atoms (hydrogen) into the nucleus of heavier atom (helium) Tritium & deuterium into helium and neutron. Renewables Solar - solar radiation drives biotic and abiotic process wind - movement of air from uneven solar heating ocean thermal - energy from difference between cold depths and solar heating of the surface biomass- carbs of plants and animal waste converted into liquid and gas hydrocarbon hydropower - water flowing downhill - from solar energy and gravity geothermal - energy from high temperature from radioactive decay of the earth’s crust, originated from the original formation of the planet ocean tidal - caused by gravitional force of earth and moon Hydropower - paraguay, norway, brazil,columbia, canada wind capacity - china germany, united states wind percentage - denmark,ireland nuclear - france slovakia, etc geothermal - us, philiphines, mexico indo, japan, italy PV over 1% - italy (8), greece, germany PV below 1% - us, china Europe Biodiesel - Canola US ethanol - Corn Brazil - sugarcane

1. 2. 3. 4.

diesel gasoline asphalt lubricants

5. plastics 6. kerosene (jet fuel) electricity: energy resulting from the flow change particles(electrons) in conducting medium. oecd: economic growth, prosperities, sustainable development. Sustainiblity transform energy and material, uses inputs and produce waste outputs. 1. Resource input Endurance (without decreasing, at constant, falling costs) 2. Non-toxicity waste output (must be benign to environment, recycled, captured & safely stored) Strong sustainabilty Natural capital does not decline Weak sustainability the sum of natural capital and human-produced capital does not decline. natural capital (ability of environment to provide humans with resource inputs and waste capacity) Human-produced capital (human-produced inputs does not decline) Peak oil consequences ● zero economic growth ● rapid decline suburbia ● conflict ● decline long distance trade and travel Peak oil (Hubbert’s Peak) bell shaped, with finite resource (time - quantity) Undermine? alternatives energy Oil is finite, exact quantity is unknown. rising prices motivate exploration and innovation. increase oil reserves. Oil to gasoline and diesel. Natural gas and coal also to gasoline and diesel. rising prices shifts curve to right and peak upward can oil price spike? yes, war. Local impacts minimized, increased production costs a bit. Fossil fuel supply cost shift upward with depletion and downwards with innovation. It’s important to design a landfill

Oil sands environmental impact local! 1. reduction in biological diversity 2. reduction in biological activity 3. dissuption of geolocial processes 4. gradual dispersion of toxin into water 5. wildfire, pipeline rupture, spill Global ? Atmosphere: common property resource that we are exploting with carbon pollution to cause global warming. Economics do cost-benefit analysis! 2’c Energy east pipeline? would exceed carbon budget within 19 years. Oil sands? oil worldwide demand drops Actions & Policies (reduction of oil scarcity risk) energy efficiency switch to renewables and nuclear carbon capture and storage CGGT Combined Cycle Gas Turbine Burns Fuel more cleanly, but extensive capital cost. 1. Gas Turbine burns fuels to generate electricity. 2. Heat recovery system capture exhaust. 3. Steam turbine delivers additional electricity Boiler generator (35%) vs CGGT (60%) Natural Gas and Coal to Diesel and Gasoline Fischer tropsch synthesis. syngas production using oxygen rather than air to produce syngas. CCS Carbon Capture and Storage up to 90% 1. Combustion: chemical process react rapidly with o2 and give off heats 2. Reforming: process designed to increase amount of gasoline that can be produced from crude oil 3. Gasification: process that converts carbon materials into carbon monoxide and hydrogen, co2. CO2 geological storage (power station with co2 capture)

1. Unminable coal beds 2. depleted oil 3. deep saline aquifier/ salt water Risk of geological storage 1. co2 in atmosphere/ shallow subsurface (effect on plants on grounds) 2. co2 in subsurface fluid (potable water contamination, mobilization of metals) 3. displacement (ground have induced seismicity) Run-of river hydro ● fewer greenhouse ● smaller environmental footprint ● But, change aquatic system works ● affect population of fish and health or river overall ● countermeasures: fish ladder hydroelectric system that harvest energy from flowing water in the absence of large dam and reservoir. Photovoltaic converts light into electricity Solar plants - US Biogas produced by the biological breakdown of organic matter in the absence of oxygen contains ch4, co2. h2s, n2, o2, h2, moisture. Natural source: 1. wetlands 2. sewage sludge 3. solid waste dumps Common feedstock source: 1. livestock manure 2. food processing 3. energy crops cut as silage Non-fossil Fuel storage 1. batteries 2. biofuels(woods, ethanol, grain, biodiesel, biogas) 3. hydrogen 4. hydro reservoirs 5. compressed air 6. heat sinks Pumped hydro storage pumped from a lower reservoir to higher elevation reservoir. during higher electricity demands, the stored water is released through turbines to generate electricity. Compressed air storage

a way to storage/capture air at one time and release as energy at another time(high period). compressed air create heat, therefore improve the efficiency. Fuel Cell/ Hydrogen eff: 40%-60%. 85% if cogeneration is used. A device that convert chemical energy from fuel into electricity with positively charged hydrogen and oxygen. without combustion requires continuous resource of input. it convert hydrogen and oxygen into water, produces electricity, heat and water. fuel anode, oxygen cathode. Cogeneration (Heat & Power) the use of the heat to generate electricity and useful heat at the same time. useful heat rather than waste is used to cooling/heating the building. Heat Pump device that are designed to move thermal energy opposite to the the direction of spontaneous heat flow by absorbing heat from cold space and releasing it to the warmer one. Why 300%? it does not violate the laws of energy/ thermodynamics. it does not create energy, but just move the energy. it is drawing from or giving energy to the environment. hence, delivers more work. Drawbacks? Cost 20x over resistance heater. Biofuel Car 6-7% ethanol vegetable oil = biodiesel corn = ethanol corn growth = carbon capture Plug in hybrid use its battery electric motor to generate power. in some cases it uses the ice acting as generator to extend its range. Hybrid main power source is still internal combustion engine. but using board / regenerative breaking to produce additional electricity. Electric car automobile powered by motor, using electrical stored in recharged batteries Dispatchable renewable/generation source of energy that can be dispatch at the request of the owner at anytime.

e.g. natural gas, fuel, biomass, hydropower with reservoirs, solar power with thermal storage, nuclear. Intermittent renewable energy cannot be controlled by operators. e.g. wind, solar power Dispatchable need for balancing electrical system demands. Drawbacks: expensive, large. Base load versus load matching base load (coal and nuclear) in fast peaking, gas, hydro, is used because take the least time to startup. Smart-meter electronic device that records consumption information of electric energy. It communicate 2 ways, hence useful to the utility of billing and monitoring. Smart grid this technology works with electrical grid to respond digitally to our quickly change electricity demand. hence more efficient and giving consumer more control. e.g. smart-meter, appliances, renewable energy research. Decentralized energy: electricity produced to where it will be used.reduce transmission losses and lower carbon emissions. Competitive market enable consumers to allocate consumption to maximize their welfare and force producers to be economically efficient. Not occur: 1. consumer choices restricted by government 2. market failure 3. monopoly/oligopoly 4. government subsidies Economic rent - return above the level necessary to invest. 1. diffrential rent (ricardian): economic rent earned by producer because og lower production costs relative to the highest producer in the market. 2. scarcity rent (hotelling): earned by producer of a non-renewable source if the market price reflects the anticipation of future increase prices caused by scarcity. 3. monopoly rent: earned by unregulated monopoly producer. (short run) Natural Monopoly

cost of production is lowest in an industry is lowest with only one firm, so it’s in society interest to establish a monopoly. policy: can either create private monopoly with regulation or create publicly-owned monopoly. monopoly: utility its regulator: utilities commision Non-linear pricing charging different prices for consumption of different quantities and at different time, but setting average prices to prevent monopoly rents. Time-of use pricing vs Block Pricing sets different price reflecting cost of provide energy and capacity at specific times. set prices that rise or fall to reflect rising or falling costs with changes in total demand. peaking plants vs load-following plants Electricity sector reform: competition 1. generation 2. transmission 3. distribution bc hydro only generation with competing producers. (hybrid wholesale competition) the transmission and distribution still monopoly vertically-integrated monopoly. technology can move away from natural monopoly. Negative externality a harm or risk from production or consumption of good that is not included in its price. under-priced good policy solution: charge producer the monetary value of harm, hence increase price. social supply market supply Social cost of Carbon estimate of incremental damages of an extra unit of carbon pollution in each time period carbon tax (reflect true net harm of co2 emissions)= social cost of carbon

in the future,

low price for producer and high price for consumer. Negative externality a harm or risk from production or consumption of good that is not included in its price. under-priced good policy solution: charge producer the monetary value of harm, hence increase price. social supply market supply Social cost of Carbon estimate of incremental damages of an extra unit of carbon pollution in each time period carbon tax (reflect true net harm of co2 emissions)= social cost of carbon in the future, low price for producer and high price for consumer. What does Co2 externality charge mean for fuel and commodity Prices? Explain 1. Historical Oil Price 2. Future Producer Price 3. Future Consumer Price Public Goods (Market Failure) Good or service characterized by non-exclusivity and nonrivalry - hence underprovided by private markets. E.g. lighthouse. Public good characterized by positive externalities. Common Property Resources Natural resource that is characterized by non-exclusivity and rivalry. E.g. ocean fishery, air,atmosphere. This is characterized by negative externalities. Policy Solution: government manage/regulate common property resource/create enforceable rights; government must provide public goods , collecting the necessary funds from society or obligating participation by all (no free riders). Is the climate change risk a common property resource or public good? Well, to reduce GHG is public good problem.

Matrix Rivalry & Non-Rivalry Exclusivity & non-exclusivity Other societal objectives: civil rights, more equitable distribution of wealth, health care, education, foreign arts, culture.

Energy Efficiency Reducing E&M throughput for a given level of energy services. Energy efficiency = energy materialization. 1. Compare conventional technology with a higher efficiency alternative providing the same service. 2. Divide extra capital cost of efficient technology by its discounted energy savings (lifecycle cost LCC of efficiency, c/kwh) 3. Graph estimated total energy savings in ascending order of cost to produce steps of dematerialization (efficiency) cost curve. 4. Initial steps negative, all steps < utility rates are privately profitable; all steps < new energy supply are socially profitable. Using life-cycle cost to estimate GHG abatement cost curves Compare a conventional technology with a lower emission alternative for the same service. Calculate life cycle cost of both technologies. Rebound effect Direct rebound: increased efficiency that lowers the operating cost of an energy service stimulates an increase demand. E.g car travel. Indirect rebound. (increase consumer income, increase demand for other goods and services, associates with energy increase) Productivity and innovation rebound. (energy efficiency fosters innovation in related products and services) Efficiency cost issues Technical energy efficiency potential- efficiency gains from 100% adoption of most efficient tech available for end -use. Rarely disputed Economic energy efficiency potential - the efficiency resulting from 100% adoption of technology that are the most profitable choice. Dispute this magnitude. Pcychist and engineers advocates ignore the cost analaysis, while economists note problem with this analysis and rebound effects. Costing renewables, non-dispatchable energy Compare renewables, fossil fuel, nuclear on life-cycle per kwh. Being able to control when a kwh is produced is no value.

Dispatchable at specific times worth up to 10x than non-dispatchable at middle night. Methods: 1. Incorporate energy storage costs for non-dispatchables. 2. Incorporate value of kwh production profile for each technology.

Common Objectives for Public Policy 1. Price regulation of natural monopolies 2. Pricing or regulation to address externalities and manage common properties 3. Providing pure and quasi public goods like national defense Pursuing other societal objectives. Actions and Policies MATA: decision making process that anyone can use. Government use it to evaluate option for a major investment program. But often govt is trying to influence the action of firms and households. Hence the actions vs policies distinction. action : change of technology, behaviour by a firm or household from otherwise would have been. Policies: effort by govt to cause specific actions by firms and household and other level of govt. To assess policies with a MATA approach, evaluative criteria are required. MATA: multi-attribute tradeoff analysis. Policy evaluation criteria Economic efficiency - low cost to society relative to other policies (equi-marginal principle) Environmental effectiveness- high probability of achieving the environmental objectiveness (doc) Political acceptabilties - policy is perceived as justiffied and fair by many and those opposed are small in number/compensated, counterbalanced by policy supporters. Administrative feasibility - policy does not require significant expansion of burecracy and is not overly complex. (linked to economic efficiency) Equimarginal principle - minimize costs of achieving an objective (emission reductions), policy design ensures that every househoulds and firm faces the same price signal for its last unit of effort (emission reduction). Adjustment can be made until all entities face the same marginal cost of abatement - achieving the equi-marginal principle and thus minimizing the total societal cost of a given outcome. Different marginal abatement costs

Environmental effectiveness (doc) Reducing fuel combustion is costly. Thus: Volunta...