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Tag Archives: EROEI
Models Hide the Shortcomings of Wind and Solar
A major reason for the growth in the use of renewable energy is the fact that if a person looks at them narrowly enough–such as by using a model–wind and solar look to be useful. They don’t burn fossil fuels, so it appears that they might be helpful to the environment.
As I analyze the situation, I have reached the conclusion that energy modeling misses important points. I believe that profitability signals are much more important. In this post, I discuss some associated issues. Continue reading
Posted in Alternatives to Oil, Financial Implications
Tagged energy profitability, EROEI, EROI, government debt
3,344 Comments
Ramping up wind turbines, solar panels and electric vehicles can’t solve our energy problem
Many people believe that installing more wind turbines and solar panels and manufacturing more electric vehicles can solve our energy problem, but I don’t agree with them. These devices, plus the batteries, charging stations, transmission lines and many other structures necessary to make them work represent a high level of complexity.
A relatively low level of complexity, such as the complexity embodied in a new hydroelectric dam, can sometimes be used to solve energy problems, but we cannot expect ever-higher levels of complexity to always be achievable.
According to the anthropologist Joseph Tainter, in his well-known book, The Collapse of Complex Societies, there are diminishing returns to added complexity. In other words, the most beneficial innovations tend to be found first. Later innovations tend to be less helpful. Eventually the energy cost of added complexity becomes too high, relative to the benefit provided. Continue reading
Posted in Financial Implications
Tagged complexity, economic growth, electricity cost, EROEI, EROI
3,434 Comments
To Be Sustainable, Green Energy Must Generate Adequate Taxable Revenue
What allows any type of energy to be sustainable? I would argue that one of the requirements for sustainability is adequate production of taxable revenue. Company managements depend upon taxable revenue for many purposes, including funding new investments and paying dividends to shareholders. Governments depend upon taxable income to collect enough taxes to provide infrastructure and programs for their growing populations.
It seems to me that Green Energy sources are held to far too low a standard. Their financial results are published after subsidies, making them look profitable when they really are not. This is one of the things that makes many people from the financial community believe that Green Energy is the solution for the future. Continue reading
Posted in Financial Implications
Tagged biophysical economics, energy profitability, EROEI, net energy
3,605 Comments
Where Energy Modeling Goes Wrong
There are a huge number of people doing energy modeling. In my opinion, nearly all of them are going astray in their modeling because they don’t understand how the economy really operates. The modeling that comes closest to being correct … Continue reading
Posted in Financial Implications
Tagged complexity, diminishing returns, EROEI, oil price, peak oil
3,331 Comments
Why a Great Reset Based on Green Energy Isn’t Possible
It seems like a reset of an economy should work like a reset of your computer: Turn it off and turn it back on again; most problems should be fixed. However, it doesn’t really work that way. Let’s look at … Continue reading
Posted in Energy policy
Tagged EROEI, EROI, low oil prices, peak oil, solar energy, wind energy
2,650 Comments
