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Wednesday, October 31, 2012

Using the Energy Stress Triangle



 How can the energy stress triangle be used to analyze energy legislation, investment or different types of generation? Let's take one of the more controversial types of power plants, nuclear power, and throw it into the energy stress triangle to see where it fits.

Nuclear Power: There is no question that nuclear power reduces rate payer stress. There is also no question that the cheap electricity that nuclear power plants produce was aided by massive Federal investment in the technology post World War II in the US.  Nuclear power also plays a key role in reducing grid stress. As “base load generation” nuclear power has the ability to run 24/7 at very reasonable prices (again the reasonable price part of this is important—if you are a manufacturing business your monthly electricity bills could be in the $100,000+ range, an increase in power prices of 10% could mean layoffs, or increased prices to consumers for whatever widgets are being produced). What is the role of a nuclear power plant on the environmental stress part of the triangle? When a nuclear power plant is running effectively it can be argued that it reduces environmental stress as there are no carbon emissions from nuclear power generation.  However, when nuclear power goes bad, from an environmental stand point it is like the exceptionally dependable friend we all have—once a decade at New Year’s Eve this friend loses all control and destroys everything in sight! Ask the people who live within 20 kilometers of Fukushima Daiichi where they believe nuclear power fits on the environmental stress part of the triangle.  

The energy stress triangle can be used to analyze different types of power generation  like fossil fuel generation (coal, natural gas or diesel),  renewable energy generation (solar, wind, hydro), local energy issues or policy (Cape Wind, Renewable Portfolio Standard, or Green Communities Act) or alternative energy solutions that are playing an increasing role in the lives of regional energy grid operators like Demand Response, large scale batteries that can reasonably store electricity, or energy efficiency incentives for residential and commercial customers.

Of all of these, one of the few items on the list above that can reduce all parts of the energy stress triangle is the simple commitment to reducing energy consumption by the end user and energy efficiency investment in the buildings that we live and work in.

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