It has often been said that renewable energy needs a
different infrastructure than fossil or nuclear energy.
Here is an attempt to spell out what this means.

Right now electricity generation can be split into base
load, load following, and peak load generators.

Base load is always turned on (except for maintenance) and
covers the minimum demand.  It must have high reliability
and low marginal cost, ie cheap (dirty) fuel and it must be
large scale to get economies of scale, which requires heavy
equipment.  This makes it difficult to increase or decrease
electricity output on the fly.  But since its capacity
factor is high it can have high capital outlays.  It is
typically coal and nuclear.

Load following plants can easily be started and regulated to
account for the variability of the load.  This requires
lighter equipment and since it is not always on, its
marginal cost is not so important, it can be simpler
equipment using more expensive fuel.  It is typically
natural gas.

Peak load power plants cover exceptional needle peaks in
demand, but most of the time they are turned off.  They are
typically diesel.

More information about this at
http://www.grist.org/renewable-energy/2011-05-26-how-to-get-to-a-fully-renewable-power-system
and
http://en.wikipedia.org/wiki/Load_following_power_plant



Some renewables are base load (hydro and geothermal) or
dispatchable (hydro and biofuels), therefore they fit into
the above framework.

But the main renewables, wind and solar, are neither base
load (because they are intermittent) nor load following
(because they are not dispatchable). On the other hand they
have practically zero marginal costs and high capital costs.

With increasing penetration of wind and solar energy, a
series of things happen:

(1) Since it becomes more difficult to adjust electricity
supply to demand, it becomes more important to adjust demand
to supply, i.e.  demand side management (DSM).  DSM is
already relevant today for peak shaving, will become even
more relevant in the future and it will require a smart grid
and smart appliances.

(2) base load will become more and more uneconomical because
it will happen more and more often that all demand is
covered by renewables, which have lower marginal cost than
base load.  In the future energy system base load plants
are of little use.

(3) Instead of base load or load following, fossil fuels
(especially natural gas) will be needed for "residual load"
which is highly dispatchable. It is like peak load because
it only takes a minute or two to start up or shut down, in
order to cover demand when the sun does not shine or the
wind does not blow, but it must be more efficient and
cleaner and cheaper than diesel because it will be needed
much more often.

(4) More and more often,  total renewable electricity
generation will exceed total demand.  This electricity will
be available for energy storage, so that in the long run the
residual load does not come from fossil natural gas but from
energy stored during the times of excess renewable supply.
Now energy storage can take many forms, some of them
unexpected.

(5) Transmission: With the present fossil-fuel-powered
system, transmission lines from the large-scale fossil fuel
or nuclear power plants to the consumers are needed.  This
transmission and distribution network has tree structure:
electricity always flows in one direction, from the
generator to the consumers.  Some renewables are
distributed, they are close to the consumption and need no
transmission at all but a more intelligent distribution
system; others are large scale (concentrating solar,
offshore wind), they need transmission to get to the
consumers, but instead of a one-way tree-shaped transmission
net, a more interconnected net which at night may bring wind
energy from Nebraska and during the day bring solar energy
from Arizona.  With better local storage options and higher
penetration of renewable energy, these transmission lines
may not have to be very long or thick.  It is not clear
at this time how everything will play out, this will
depend on how technology develops.

(6) Transportation fuels.  So far we only talked about
electricity.  Transportation must either be electrified
(electric railroads, electric cars) or must use biofuels or
hydrogen produced by electrolysis from renewable
electricity.

(7) Space heating and air conditioning, water heating,
cooking: New buildings will be much more energy efficient,
they will not need natural gas for heating and cooking but
electricity (ground-sources heatpumps) and water will at
least be pre-heated by the sun.

(8) Combined heat and power will become the rule instead of
the exception.  Natural gas facilities for residual power
will be smaller and cleaner than today's large scale base load
generators; therefore they can be located in populated areas
and the waste heat from the electricity can be used for area
heating, greenhouses, etc.  Initially this will use fossil
natural gas, but over time it will switch to biofuels.

(9) How all these things will play out depends on
technology: whether and when there will be a breakthrough in
battery technology, various storage technologies, fuel
cells, also energy saving technologies for end users (LED
lights).  For climate reasons it will also be necessary to
extract CO2 from the air and sequester it, i.e. CCS may play
a role even after all coal-fired power plants have been
phased out.

(10) It will also depend on political constellations.  The
fossil fuel and nuclear industries are fighting tooth and
nail against being superseded by renewables.  They try to
maintain the fairy tale that there is not enough renewable
energy or that it is too expensive.  Not true.  The
construction industry is fighting against stricter home
efficiency standards and higher in-home technology which
will make pre-fab homes necessary, the auto companies will
fight against electric vehicles because electric motors last
20 times longer than internal combustion engines, etc.

(11) There is absolutely no need to use nuclear energy,
neither fission nor fusion.  It is too expensive and too
dangerous (especially in times of political turmoil).

This is how I see it.  I may have overlooked things.
Please comment.

Hans
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