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California electric grid sets solar generation record

“California set back-to-back solar power records last week, the state grid operator said on Monday.

The amount of electricity produced from carbon-free solar facilities connected to the grid reached 4,093 megawatts on Saturday, surpassing the day-earlier record of 3,926 MW, the California Independent System Operator (ISO) said in a statement.

With 5,231 MW, California leads the nation in installed solar generation, including thermal and photovoltaic facilities, according to the Solar Energy Industries Association.

Power generated from solar has more than doubled from June 2012 when the ISO recorded 2,071 MW of peak production, the ISO said.

The record solar generation accounted for about 18 percent of the state’s 22,700-MW demand on Saturday, the ISO said, with the ability to supply about 3 million homes.” – Reuters

The rise and rise of big, grid-connected solar is complex information for the Australian energy business. Who doesn’t want cheap energy? The producers of less cheap energy, of course. Can big solar really achieve low enough prices to trouble coal and gas in an open market? If you believe the United States government, it can: the DoE predicts 5c / kWh within the next few years, and some plants are already shipping electricity at that price. How will local entrepreneurs react when this becomes a deployable commercial fact? There is certainly money to be made. Interesting times.

Santos’ gas game shattered by a U-bomb

Tristan Edis writes in the Climate Spectator:

“It was the last thing that Santos needed after receiving a series of bad reviews from stock market analysts about its failure to grow its reserves of gas.

Last Saturday, The Sydney Morning Herald reported that the NSW EPA had fined Santos because extracted waste water from its coal seam gas drilling in the Pilliga Forest, near Narrabri, had contaminated an aquifer.

But what leaked into the aquifer generates the kind of fear and concern among the community that cannot be calmed by rational discussion or a range of engineering safeguards and expert reassurances. The leak included uranium, at levels about 20 times above the level of Australian drinking water guidelines for human health. Of course, it wasn’t the only nasty element in the water with lead, arsenic, and barium also present. These are all incredibly toxic, but uranium holds a special place in the human psyche due to its association with the atom bomb.”

We think: the possible contamination of aquifers is the most common form of attack on the sustainability of unconventional gas. Santos has done itself and the industry no favours here. In Australia the regulator has teeth.

Natural Gas for Power Generation: The Generator’s Perspective

“As 2014 progresses, US utilities are focusing more and more on natural gas. Coal plant owners have announced 54,742 MW of coal capacity will be shut down by 2025. On top of this, over 60% of planned generation additions between 2012 and 2040 will be fuelled by natural gas.”

That’s the view of FC Gas Intelligence. You can download their 12 page report here. Registration’s required but it’s an excellent read.

We think: the United States’ determined play for energy self-sufficiency based on natural gas will be the big story in the global energy market over the next 20 years.