LOCATION-VARIABLE COSTS — LINE LOSS

In a comment following Peter G’s 25 May 2010 post “A Coal Plant Proposal Gets Even Dirtier,” Groveton said:

“Side note to EMR … I had a chance to talk with the head of engineering at a mid-western electricity company today. I asked him about line loss. He says a good rule of thumb is 7% of electricity is lost in transport – 3% in the transmission facilities and 4% in the distribution network.

“I am not sure how you arrive at the estimate of 30% line loss in calculating location variable costs. It sounds like the number should be 3% not 30%.”

EMR could make a ‘Peter G.-like” comment about the quality of Groveton’s research but will refrain.

The latest report of DOE’s Energy Information Administration (EIA) notes that of the 21 Quadrillion Btus devoted to the delivery of residential and commercial electrical energy, about 62 percent is “lost during generation, transmission and distribution.”

A utility can lower line loss by shortening distribution systems and keeping the transmission voltages high. Utilities can also cut line loss by lowering the temperature of the conductor – surrounding it with liquid nitrogen, etc – but that is not cost effective for most applications.

A smart utility would carry electrical service to big users at as high a voltage as possible to minimize line loss and that would lower the average system-wide line loss.

All that makes NO difference with respect to the 10 X Rule.

The numbers for total cost of delivering electric service in the 10 X Rule calculations — including line loss — were based on the actual cost of delivering the electricity over the actual distance required to distribute the service to 10 acre lots in a 10,000 acre area using the cost due to actual loss at the voltage used for distribution by the utility that provided the data for the specific distribution pattern in that specific location.

There is no back door. The bottom line is:

It is not possible to scatter Urban dwellings across the Countryside and provide them with electrical service – and other goods and Services – at a price that the end user would be willing to pay IF THE USER HAD TO PAY THE TRUE LOCATION-VARIABLE COSTS.

A few notes:

We suspect Groveton got an irrelevant answer because he has yet to wrap his mind around all the implications of dysfunctional geographic distribution. He was thus not able to articulate what he needed to know from the engineer.

EMR has pointed out for 37 years that FAR HIGHER efficiency can be achieved from Cluster, Neighborhood, Village and Community scale systems (including Modular Integrated Utility Systems) that capture and use the heat and generate the electricity ‘at’ the consumption site.

About 57 years ago EMR was privy to a powerful demonstration of the overwhelming economic advantage of bringing big users of electricity to the site of hydro-electric generators.

EMR is not sure where the “30 percent” figure Groveton cites came from. System wide, EMR has assumed that line loss was between 8 and 15 percent but does not recall the basis for that assumption. But again, that has nothing to do with the 10X Rule.

It is interesting to note that in EIA’s Annual Energy Review, they are specific about the waste of energy in producing electricity but not other forms of fuel. It must take energy to pump, transport, refine, transport and distribute gasoline – the ‘best’ internal combustion engines in Autonomobiles on the market today are only 30 percent efficient – but that data is not front and center as is the “loss during generation, transmission and distribution” of electricity.

Hope that helps Groveton.

EMR


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Comments

7 responses to “LOCATION-VARIABLE COSTS — LINE LOSS”

  1. Larry G Avatar
    Larry G

    I think if EMR made the claim that if electricity were generated at the cluster level – he could be correct and righteous and indeed many of our urban areas did just this when electricity first became a must-have urban need.

    but you still had transportation costs for the fuel.

    The Mirant and Possum Point plants in the NoVa area are examples of such plants.

    and you also have the location variable "costs" associated with air quality.

    but if you're going to set up a generating plan – and transport fuel to it – then explain why it's okay to do that for Fairfax but not for Fredericksburg?

    As long as each location pays for their fuel transportation costs and accepts the air quality impacts of locally-generated electricity – what's the problem?

    I'm willing to bet that the transportation costs from West Va to DC is not much different than from WVa to Fredericksburg, no?

    In fact, Fredericksburg used to generate it's own power also – way back when.

    what changed?

    Well.. some smart people figured out that moving electrons over wires was cheaper than moving coal over rails and that one really big plant could situated regionally could save on coal costs, use more efficient large-scale coal-burning AND externalize the air quality impacts as an added benefit.

    Now. I'm trying to figure out how EMR and AZA and company would "unravel" this.

    That's part of the problem with these guys.

    I never really hear – " this is what we should do instead"

    only insistence that there are "externalities"…

    where's the BEEF?

    If your claim is true – then tell us how it might be fixed.

  2. Anonymous Avatar
    Anonymous

    EMR – The U.S. Department of Department of Energy states "America operates about 157,000 miles of high voltage (>230kV) electric transmission lines. While electricity demand increased by about 25% since 1990, construction of transmission facilities decreased about 30%. In fact, annual investment in new transmission facilities has declined over the last 25 years. The result is grid congestion, which can mean higher electricity costs because customers cannot get access to lower-cost electricity supplies, and because of higher line losses. Transmission and distribution losses are related to how heavily the system is loaded. U.S.-wide transmission and distribution losses were about 5% in 1970, and grew to 9.5% in 2001, due to heavier utilization and more frequent congestion." http://sites.energetics.com/gridworks/grid.html

    The same page includes the following statement. "The roughly 5,600 distributed energy facilities typically combine heat and power generation and achieve efficiencies of 65% to 90%."

    TMT

  3. Anonymous Avatar
    Anonymous

    These guys? How about this Guy.

    Anyway EMR is right this time . You have to add transportation for the alternative to make a comparison.

    Larry is right about the results. It is cheaper to
    ship electrons.

    Rh

  4. Larry G Avatar
    Larry G

    the thing about this whole issue is the underlying premise that providing electricity to areas outside of the functionality sweet spots of settlement patterns would be much more expensive if they really charged for the location "scatterization".

    I would argue that when you built the original rail network that it functioned in some respect much like the building of the farm to market roads and that is if you think the purpose of both was to serve ONLY urban areas and that all the places that were adjacent to the roads/rail were not intended to be served then no one else at the time those rails and roads were built advocated any kind of a rule that said that coal could not be delivered to other settlements "scattered" along those rail lines.

    then you build a farm-to-market road to help those who farm – get milk and eggs delivered to those urban area where chickens and cows have been outlawed and you have the beginnings of "distribution" of products.

    So if the rail went to Fairfax and it also went to Fredericksburg or any similar sized area – that allowed them to build a power plant to provide electricity to that area – and yes it did not extend everywhere but only where it was "locationally" and economically feasible.

    The point here is that you can have a dense location just about anywhere.. and accomplish the electrification and with rail .. many other things not locally grown or manufactured.

    Once that happened, the folks who were in business of providing electricity or farm tractors or kumquats could source the generation locations of those products REMOTE from the areas that were served by those products.

    How do you tell the electric company or the tractor company that they cannot build their own or use available distribution systems ?

    You can't.

    Do you see NoVa telling Dominion Power that they cannot generate electricity except within the Centroid?

    Of course not.

    Do you see NoVa telling anyone that tomatoes from Mexico are "illegal"? Nope.

    How would you design or operate a place like NoVa such that any olives that are sold there can ONLY come from "approved" Urban Support Areas?

    Urban Support Areas have never been really well articulated here – only as a fuzzy concept that attempted to legitimize the fact that functional settlement patterns cannot exist – with externalizing their needs to start with.

    So.. we end up with EMR questioning how OTHER areas deserve or don't deserve to be served by remote electricity generation but functional settlement patterns DO DESERVE to be served by their very own Urban Support Areas for electricity.

    At this point.. the who shebang starts to fall apart, no?

  5. Well, yes.

    If you follow the locavore logic to its conclusion absurdium everyone would make or grow everything they use because that would e the ost effcient transportation —none.

    I make and grow a high proportion of what I use compared to other people, but I don't pretend to Amish or aboriginal.

    EMR's fundamental argument: that there must be some best combination of places and things that is optimally efficient is probably OK.

    But I believe he is way off base on how he figures the cost of things, hopelessly optimistic as to what it would take to accomplish, and hoplessly pessimisic on the economy needed to fund it.

    His elaborate if-only-everyone-was-educated-to-be-as-smart-as-me scenario is a pipe dream. We would all be better off if he and others like him spent their energy figuring out how to work with what we have and make it incrementally better with the money we have to work with.

    RH

  6. Robjl Avatar

    The electric transmission grid could be much more efficient then it currently is. For example, the current power flow over transmission lines can be safely increased by 5% – 30% over 80% of the time. The problem is that current line 'ratings’ (which put a max amount of load that can be carried) are based on days-of-old very conservative 'static' ratings. If transmission companies would embrace modern technology they could implement ‘real time’ or dynamic line ratings (which are currently commercially available) these rating could optimize the flow of power based on dynamically changing climate conductions (cooling allows for more amps through the wires). This would allow lines to carry the maximize flow they are designed to carry over 90% of the time. This would translate into the need for lower capital spending, the reduced need to build new and costly transmission lines and provide lower cost energy for the end user (us!!). The industry has been very slow to adopt this technology, probably for political reasons.

  7. OK, and after you squeze that little bit of efficiency out you still have to build more lines and more towers.

    And you have a system that is intrinsically closer to its failure point all the time.

    The savings are smoke and mirrors: if they were easy to get we would have taken them.

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