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Today, the Sacramento Bee and San Jose Mercury News both quoted Program on Energy and Sustainable Development Director Frank Wolak in their stories about California’s recent blackouts.  In the Sacramento Bee’s article about the California Independent System Operator declaring a temporary ban on “convergency bidding,” Wolak came out in support of the system comprised of power generators and traders saying that it sends the proper price signals to drive supply. The San Jose Mercury News article said that California electricity shortages will be more common during major heat waves due to the state’s shift away from fossil fuels providing more consistent power to cleaner but more intermittent sources such as solar and wind energy.  “We have a much more risky supply of energy now because the sun doesn’t always shine when we want and the wind doesn’t always blow when we want,” said Wolak. “We need more tools to manage that risk. We need more insurance against the supply shortfalls.”

 

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Wolak: Solving California’s Power Crisis

Wolak: Solving California’s Power Crisis
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Given the urgency of climate change, it might seem sensible for aid agencies and multilateral donors to stop funding fossil fuel projects -- any fossil fuel projects -- in developing countries. But Program on Energy and Sustainable Development Associate Director Mark Thurber (writing with Energy for Growth Hub's Todd Moss) explains why shutting the tap on gas in Africa is bad development policy and bad climate policy.  Read more

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On June 3, Program on Energy and Sustainable Development (PESD) Director Frank Wolak participated as one of three energy experts in a virtual panel discussion evaluating the pros and cons of proposed “reach codes”  banning natural gas in the city of Los Altos, California.  The panel discussion - "Mandating All Electric:  Is Banning Natural Gas Really The Answer?" - was organized by a group of Los Altos residents who believe city residents’ voices need to be considered in government decisions. 

Reach codes are being considered for all new residential and commercial building construction, and all “scrape” remodels in the city.  A reach code is a local building energy code that reaches beyond the state minimum requirements for energy and its use in building design and construction. These codes facilitate local government’s efforts focused on clean air, climate solutions, and renewable energy economics.

Recorded discussion

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Unconventional natural gas and the technologies developed to extract it in the U.S. point to a possible lower carbon energy future for China that can be facilitated through international cooperation between them, improving China's reliance on domestically produced coal, and creating economic and environmental benefits for both countries as well as the rest of the world.

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Boao Review
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Frank Wolak
Frank Wolak
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Last week, Stanford's Board of Trustees announced that the university would not directly invest funds from its endowment in coal mining companies.  Even the strongest advocates of this action acknowledge that it is a symbolic gesture with little direct effect on the coal industry or global greenhouse gas emissions.  But if a university administration wants to take symbolic (or real) action on climate change, is coal investment a wise choice?

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Frank Wolak
Frank Wolak
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Mark C. Thurber
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Program on Energy and Sustainable Development (PESD) Associate Director Mark Thurber was a panelist at the 2019 Energy Security Workshop in Washington, D.C., where he spoke about why LNG (liquefied natural gas) struggles to compete with coal. The event took place on May 29th and was jointly hosted by the National Bureau of Asian Research and the Woodrow Wilson International Center for Scholars.
 
The competitive disadvantage for LNG is twofold. First, LNG is almost always more expensive than coal. Second, the LNG value chain is more difficult to stitch together. The high cost of LNG infrastructure -- which includes liquefaction plants, LNG tankers, and regasification facilities at the receiving end -- means it will only be built if there is a creditworthy end-use customer willing to pay high prices for gas over a long period of time. But potential customers, for their part, are unlikely to build out gas-using applications until they are certain that gas will reliably be available. This value chain coordination problem is especially severe in countries with limited existing infrastructure for gas transportation and use.

The net result, Thurber concluded, is that LNG will struggle to gain ground against coal, especially for use in the power sector, until countries more explicitly factor environmental factors (where gas has a significant advantage over coal) into their energy markets. (Thurber discusses these and other challenges in replacing coal in his new book, Coal, which is available at https://www.amazon.com/Coal-Resources-Mark-C-Thurber/dp/1509514015)
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Flaring of natural gas that can't be utilized represents both an economic loss and a major environmental problem. Writing for Energy for Growth Hub, PESD associate director Mark Thurber describes why gas flaring is stubbornly persistent around the world, and what can be done to productively use more of the gas that is currently going up in flames.  Read more

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