27 Jul '14, 2pm

Solar, peak oil and net energy

Solar, peak oil and net energy

This macroeconomic outcome is consistent with a low net energy, and aligns with Prieto and Hall’s case study. It’s important to recognize that when we buy electricity, we are really buying access to the grid and the associated reliability. This is a legacy of historically state-run electricity, when there was an informal social contract that those who used the most energy paid the most, even though utility infrastructure costs are mostly reflective of reliably meeting peak demand. Debates over the trade-offs between demand reflective pricing and average cost pricing date back to the 1940s and were eventually settled in favour of flat energy tariffs, which are still used today. The problem is that solar is supplying energy but contributing no reliability, hence flipping the traditional socialised model and ‘gaming’ the system. In Spain, as in Australia, there is no easy rem...

Full article: http://peakoil.com/alternative-energy/solar-peak-oil-and-...

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