End Usage and the Democratization of Energy

Economically viable power supply

Of course, not every consumer will go into the energy business: As already described in one of my previous posts, a flexible energy system will be based on smart grids that act in the background while coordinating supply and demand. Today, state-of-the-art information technology already makes it possible to coordinate the demand for grid-based services and reduce the supply to uncritical consumers (Demand Side Management).

It is correct that our “hunger” for energy is constantly growing, but is the construction of more nuclear power plants really the right solution? Based on the following “benefits”, we are tempted to answer “Yes” to this question: Nuclear power plants do not produce carbon dioxide (CO2) and are not reliant on fossil fuels that are limited in their supply. Although no carbon dioxide is produced during nuclear fission itself, nuclear power plants, from a holistic point of view, are not completely free of emissions: Greenhouse gases are produced during construction, operation and decommissioning of nuclear power plants as well as during the extraction and enrichment of uranium. Also our uranium supplies (the “fuel” required for the operation of nuclear reactors) will not last forever, and this is not even taking into account the risks radioactive fission products pose to the environment and to health or the still unresolved storage problem.

I think we should take these facts as a chance to reconsider our power generation methods and develop them further by implementing innovative technologies. If we are to become less dependent on those few suppliers of fossil fuels and prevent an ever increasing production of greenhouse gases all over the world, the integration of renewable energy (RE) will become indispensable.

Solar and wind power, and – depending on the region – also geothermal or hydropower are virtually inexhaustible sources of energy. Studies and pilot projects (by TU Berlin or by Fraunhofer IWES in cooperation with our company) have shown that it is possible to intelligently connect and efficiently control power plants from the different fields of renewable energy (water, wind, solar, biogas), and ultimately integrate them into the power supply grid. In the fall of 2013, researchers from Siemens, Fraunhofer IWES and other project partners were able to prove by means of a field test that virtual power plants of this kind can cover the electricity demand of a large region at exactly the right times, see also http://www.siemens.com/innovation/en/news/2013/e_inno_1332_1.htm and http://www.kombikraftwerk.de/start.html.

Often, reference is made to the high costs involved in the use of RE. If the initial high costs had always been the decisive criterion in the development of innovative technology, electric generators, for example, would never have been invented (just remember the pioneering work of our company founder Werner von Siemens on the principle of electrodynamics in this respect). Furthermore, power engineering – the fundamental requirement for the age of electricity – would not have been developed. Not to mention the improvement to the quality of life electrification has brought about. We would still be using steam engines nowadays instead of electric motors. We would still be washing our laundry by hand, would not be able to use hard disks or CD players, would not travel by subway, car, ship or plane or use air conditioning, elevators, escalators, locomotives or modern machinery. To cut a long story short: without electric motors, the world would be at a standstill.

Also with regard to profitability and competitiveness, RE is making good headway.

It is a fact that the electricity generated by means of wind and solar power today is already more economical than nuclear-based electricity. The reason for this is that the development of the associated technology has not only just started now, but several decades ago: While efficiency has increased, the costs are decreasing. According to a study by “Agora Energiewende”, RE plants can now produce electricity at half the price compared to modern nuclear power plants.

Another point that can be put forward here is that renewables cannot meet baseload requirements, as their production depends on weather conditions. In the above-mentioned Agora study, the experts entertain the idea of a possible power supply system which, apart from wind turbines and photovoltaic systems, also has integrated gas-fired power plants as a backup for periods during which the wind does not blow or the sun fails to shine. This study has revealed that the costs for this environmentally friendly and almost CO2-free combined system are one fifth lower than for those based on nuclear electricity.