Thursday, April 4, 2024

Hinkley C

This is a post on the decision making and building of the Hinkley C Nuclear Power Station in the UK.

That the UK government was seriously considering building nuclear power plants was signalled by the then PM Tony Blair 5 at the Confederation of British Industry (CBI) Annual Conference on 28 November 2005.

Here is a report discussing the announcement

Here is another link with quotations from blair

Speaking at the CBI’s annual conference Mr Blair told delegates that energy policy was back on the agenda “with a vengeance.”

“Round the world you can sense feverish re-thinking. Energy prices have risen. Energy supply is under threat. Climate change is producing a sense of urgency”, he said. “I can today announce that we have established a review of the UK’s progress against the medium and long-term Energy White Paper goals. The Energy Minister Malcolm Wicks will be in the lead, with the aim of publishing a policy statement on energy in the early summer of 2006.”

“It will include specifically the issue of whether we facilitate the development of a new generation of nuclear power stations,” he said.


The link below is to a news conference in on June 8th 2006. (The link will display in a new tab). The section on nuclear starts at 32:06 minutes in.

Link to Press Conference

From the transcript

Question from Journalist

You talked earlier about nuclear power coming back up the agenda with a vengeance, and I was wondering whether you think it is possible to build a new set of nuclear power stations with the kind of extended planning inquiries that we have had before the construction of places like Sizewell B? And secondly, how can a government set a regulatory framework that acknowledges the low carbon contribution of some nuclear power stations?

Reply from Blair

Well, I don't think I can say much more on the planning system, but I think it is very important to emphasize, because I think there is a misunderstanding maybe in parts of the public here. I am talking about replacing our existing nuclear power capability, because if we don't then over the next few years we are going to see a dramatic reduction. So sometimes this argument is put as if here am I saying right let's increase dramatically the amount of nuclear power we have. That is not the issue, the issue is over the next 15 years 20 percent of the electricity that we get in this country that comes from nuclear is going to decline to virtually nothing. So the question is, are you going to be able to make that up from other sources? And we are already planning to make a big push on renewables, we are already planning a major push on energy efficiency, and therefore to me it is very difficult to see how you are going to be able to have a secure energy supply in the future unless you are replacing at least the nuclear power stations that are going to be decommissioned. So I can't tell what the planning system is going to be yet, and that is something that obviously the Energy Review will look at, but that is the heart of the issue, it is whether you replace these ones.

It is clear from Blair's answer that he and his government supported the building of new nuclear power plants in 2006. Nuclear power was "coming back up the agenda with a vengeance" and "...to me it is very difficult to see how you are going to be able to have a secure energy supply in the future unless you are replacing at least the nuclear power stations that are going to be decommissioned."

Blair also mentioned the Energy Review which was published later in 2006.

Click on this link for the energy review

The Nuclear section starts on page 113

The Energy Review clearly supported the building of new nuclear power plants in line with the arguments of tony Blair above.

The Nuclear section of the report begins with the following paragraph

5.93 Nuclear power is a source of low carbon generation which contributes to the diversity of our energy supplies. Under likely scenarios for gas and carbon prices, new nuclear power stations would yield economic benefits in terms of carbon reduction and security of supply. Government believes that nuclear has a role to play in the future UK generating mix alongside other low carbon generating options. Evidence gathered during the Energy Review consultation supports this view.


Électricité de France (EDF) was clearly the likely builder of the Hinkley project early in the process. In February 2007 Vincent de Rivaz, chief executive of UK division EDF Energy stated “EDF will turn on its first nuclear plant in Britain before Christmas 2017 because it will be the right time”.

Sources: https://www.mub.eps.manchester.ac.uk/nuclearhitchhiker/a-drop-in-the-ocean/ and https://docplayer.net/8662131-Hinkley-point-new-nuclear-power-plant-the-story-so-far.html

A bill to authorise the building of new nuclear power plants (among other things) was introduced into the House of Commons on 10th January 2008. Here is a link to the Bill

In introducing the bill the Secretary of State for Business, Enterprise and Regulatory Reform, John Hutton stated:

Giving the go-ahead today that new nuclear power should play a role in providing the UK with clean, secure and affordable energy is in our country’s vital long-term interest. I therefore invite energy companies today to bring forward plans to build and operate new nuclear power stations. Set against the challenges of climate change and security of supply, the evidence in support of new nuclear power stations is compelling. We should positively embrace the opportunity of delivering this important part of our energy policy.
.

Here is a link to Hansard showing Mr Hutton's statement.

Thursday, January 18, 2024

Rooftop Solar - A Great Investment

Introduction

A few weeks ago my wife, Margaret, asked me whether the Solar Electricity System we installed in our house was a good financial idea. I decided to investigate and answer the question.

Later in this post I will describe the methods I used to investigate this issue, but the answer can be clearly stated: our Solar Electricity System is a great investment. I calculated that we saved $813.40 in 2023. I determined that the yearly cost of electricity without the Solar System would be $1,505.02 . The sum of our bills for the year was $691.62 : $1,505.02 - $691.62 = $813.40 .

If we were to invest the money we spent on our Solar Electricity System we would need a return of 11.5% to make the same money as we saved on our electricity bills with Solar. A return of 11.5% PA in an investment that is safe is extremely difficult to find.

Our Solar Electricity System had an out of pocket cost of $7,055. It is a high quality system, see details below, and the cost includes the Victorian Government Rebate of $2,225. Percentage return on investment is calculated by amount saved divided by cost of electricity system multiplied by 100: $813.40 / 7,055 * 100 = 11.5 .

The Data

I used two sources for the data required for the calculation - our Fronius Smart Meter and the Electricity Bills.

Fronius Smart Meter.

The Smart Meter is installed in our electricity switchboard as shown in the video below:



The Smart Meter sends data to the Fronius Site and can be accessed via an app on my phone.

The app shows instantaneous data as shown in the video below:



The app also supplies full day data as shown in the photo below:

There are three pieces of information, reported in Kilowatt Hours (kWh). Click on this link for an explanation of the meaning of the term Kilowatt Hour.

Production: The amount of electricity produced on the day by the Solar Electricity System in kWh.

Consumption: The amount of electricity used by the electrical appliances in the home.

Self-consumption: The amount of electricity supplied by the Solar Electricity System to power appliances in the house.

The app also generates a graph showing the levels of these amounts during the day.

The date is also included at the bottom the output, in this case 19 Jan 2024.


Electricity Bills.

The graphic below shows the section of our electricity bills that provides the information about electricity usage and the consequent bill charge:

The start and end dates of the bill and the number of days covered.

The supply Charge - $1.0767 per day (28 days equals $30.15)

The electricity Usage (imported from the grid) in kWh (113) and cost per kWh ($0.2436) and total cost $27.53)

Solar Credit (the amount of electricity our system exported to the grid) in kWh (433) payment per kWh ($0.08) and total amount subtracted from the bill ($34.64)

GST (calculated as 10% of sum of Supply Charge and Electricity Usage - $5.77)

Total charge (Supply Charge plus Electricity Usage plus GST minus Solar Credit - $28.81)



The Calculations

The Solar Electricity System reduces the cost of Electricity paid to the supplier in three ways

1) importing less electricity from the grid because some of the electricity used in the house is supplied from Solar, 2) payment of the Solar Credit which as shown above is a direct reduction of the bill and 3) reducing the GST paid as less electricity is imported

Importing Less Electricity

The cost of the amount of electricity we consume (Consumption in the app) can be calculated by multiplying Consumption by the cost of importing per kWh - $976.29

The amount of electricity imported can be calculated from the data in App (Consumption minus Self-consumption) and from the Bills. Both methods arrive at similar amounnts to within a 99% accuracy.
I calculated this saving as $340.22 .

Solar Credit

The value of the electricity exported can be calculated by summing the values of the Solar Credit on the bills. This results in a figure of $415.59 .

Using this method the saving would be $340.22 plus $415.59 which equals $755.81 .

Reducing the GST Paid

Another method of calculating the saving is by calculating the total cost of the electricity used and then subtracting the actual cost from the bill.

The bill is calculated by summing the value of the electricity imported and the supply charge and calculating the GST from that sum (which is 10%) then subtracting the Solar Credit.

The value of the total amount of electricity consumed (calculated from the app) can be determined by multiplying that total amount by the cost (per kWh) of the electricity. The total amount of the bill if we did not have solar can be calculated by summing the value of the total amount of electricity consumed ($976.29) the total supply charge ($391.92) and the total GST ($102.31). This gives a total of $1470.52 . As we are trying to calculate the total bill cost without solar, that GST value is too low. Without solar more electricity would be imported which would increase the GST value by $34.50 .

Consequently I calculate the total cost of our electricity without solar as $1,505.02 .

Given that the total cost of electricity from the bills was $691.62 the saving is $813.40

The Solar Electricity System

We purchased the Solar in two installments.

The initial purchase was from EnviroGroup. Usually the size of household solar electricity systems is 5 to 6 Kilo Watts. We initially purchases a smaller one as at that time we did not have access to a Solar Credit (sometimes called a Feed In Tarrif).

We purchased 8 solar panels that had a maximum output of 2,560 Kilowatts. We purchased a Fronius 5 Kilowatt inverter, as Fronius is one of the best brands and so we could expand the number of panels in the future. The cost of this system was: $5789.99 .

When a Feed In Tarrif became available we added another 8 panels from SolarGain with a maximum output of 2,600 Kilowatts. Giving a maximum output from the panels of 5,160 Kilowatts. We included the Fronius Smart Meter in this purchase. Total price: $3490.00 .

These two purchases totalled $9279.99 which might seem pricey, but we decided that a system with top quality components was the best solution.

We applied for the Victorian Solar Rebate and received $2225.00.

The out of pocket cost of our solar electricity system was: $7054.99