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Power

Chile Has So Much Solar Energy It's Giving It Away for Free (bloomberg.com) 231

An anonymous reader shares a Bloomberg report: Chile's solar industry has expanded so quickly that it's giving electricity away for free. Spot prices reached zero in parts of the country on 113 days through April, a number that's on track to beat last year's total of 192 days, according to Chile's central grid operator. While that may be good for consumers, it's bad news for companies that own power plants struggling to generate revenue and developers seeking financing for new facilities. The main culprit is the northern part of the country, in the Atacama desert. Chile's increasing energy demand, pushed by booming mine production and economic growth, helped spur the development of 29 solar farms, with another 15 planned, on the country's central power grid. Now the nation faces slowing demand for energy as copper production slows amid a global glut, and those power plants are oversupplying a region that lacks transmission lines to distribute the electricity elsewhere.
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Chile Has So Much Solar Energy It's Giving It Away for Free

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  • by Anonymous Coward on Thursday June 02, 2016 @10:23AM (#52233005)

    Too much clean, renewable energy? That's a problem I'd like the US to have.

    • by MountainLogic ( 92466 ) on Thursday June 02, 2016 @11:23AM (#52233549) Homepage
      Has happened on a small scale in the US. In central Washington, where the dams on the Columbia River and an abundance of wind power occasionally produces a "perfect storm" of spring snow driven runoff from the Cascade Mountains driving the dams to max production and spring winds producing more renewable power than the region can export with existing transmission lines the result was predictable with zero cost exchange power and conflict over who gets to export their power. The region already has a large pumped storage facility on the Columbia complex, but we still need more storage and transmission capacity.
    • But jobs.
      And you don't want the government paying for other peoples energy with my tax dollars.

    • Too much clean, renewable energy? That's a problem I'd like the US to have.

      Not really. That is already a fact in countries like Denmark and Germany. It's bad for a whole host of reasons, both technical when it comes to distribution etc. and economic. In fact Denmark and German couldn't handle their large solar/wind-installations today, if it weren't for all us good neighbours to buffer their wild swings. (And Germany is still 50% brown coal, don't forget that).

      The fact of the matter is that renewables that we have today at any scale (i.e. wind and solar) due to their intermittenc

  • by ErikTheRed ( 162431 ) on Thursday June 02, 2016 @10:27AM (#52233033) Homepage

    And must people keep using the normally beautiful word "free" in such an Orwellian context? There is literally a whole world of unseen (a la Bastiat) opportunity costs behind this overbuilt boondoggle, especially in a country largely still mired in poverty.

    • Do you really know what "Orwellian" means?

    • by NotInHere ( 3654617 ) on Thursday June 02, 2016 @10:31AM (#52233069)

      No, it is literally free.

      In a free (as in freedom) or "perfect" market, price is determined by offer and demand. If you *have* to get rid of a good (like solar energy), and you can't store it (like with energy, in connected energy networks the produced energy always has to be exactly the same as the used energy otherwise the frequency goes awry), and nobody wants to pay you for it, you either have to give it for free, or even pay for it.

      • Or you can just waste it.

        • Even for that you need to build "energy waste plants", and maintaining those plants is a cost for you. And it gives you really bad publicity.

          • by Anonymous Coward on Thursday June 02, 2016 @11:37AM (#52233703)

            With solar it's actually quite simple: You turn off the inverters. The solar panels don't break if you don't consume the electricity. Of course there's a capitalist incentive not to do that and to give away the electricity instead. If you can't make a buck, at least you can prevent the competition from making a buck.

            • by ShanghaiBill ( 739463 ) on Thursday June 02, 2016 @12:18PM (#52234209)

              The solar panels don't break if you don't consume the electricity.

              Not immediately. But if you shutdown the inverters, the voltage builds up in the cells until the backflow of electrons cancels out the solar induced flux, generating heat. Hotter cells have a shorter lifetime.

              • Not immediately. But if you shutdown the inverters, the voltage builds up in the cells until the backflow of electrons cancels out the solar induced flux, generating heat. Hotter cells have a shorter lifetime.

                Plastic tarps over the panels?

        • or just turn off the solar cells.

      • by fibonacci8 ( 260615 ) on Thursday June 02, 2016 @10:57AM (#52233311)
        Free as in, "already paid in full by taxation, then handed back to taxpayers without additional charges." So "marketing department" free (as in buy one get one free, or free with any purchase of at least $20), so sure it's literally free in that sense. A "perfect" market doesn't contain a step where a government takes full credit for the productivity of the citizens it's meant to represent. The taxation step suggests it's not free as in freedom or free market.
      • In a free (as in freedom) or "perfect" market, price is determined by offer and demand.

        Are you implying there's anything resembling a perfect market in the electricity generation world? You're talking about an industry which from every single angle and for every single source and supply is regulated, subsidised, penalised, taxed, refunded, and generally blended in a massive blender of regulation sponsored by tax money.

        The power industry is a textbook example of an imperfect market, which is exactly how people ended up in the situation of investing money for a product they can't get anything f

      • The fact that it is "free" does not make it "given away".

        As long as you have no consumer your problem in connected energy networks the produced energy always has to be exactly the same as the used energy otherwise the frequency goes awry is not solved by energy that costs nothing but by energy that is promptly consumed.

        Regarding that particular grid: I doubt it that private consumers get the power for free. They have a meter. They pay at the end of the month what the meter shows.

        Energy for zero or negative

    • by AmiMoJo ( 196126 )

      Speaking of opportunities, it looks like there is a huge one for someone who can build water desalination and hydrogen production plants, among other things.

    • by jafiwam ( 310805 )

      And must people keep using the normally beautiful word "free" in such an Orwellian context? There is literally a whole world of unseen (a la Bastiat) opportunity costs behind this overbuilt boondoggle, especially in a country largely still mired in poverty.

      "Mired in poverty"?

      Get your facts straight. Chile's numbers are similar to hellholes such as South Korea, Japan, and Denmark.

  • by ssam ( 2723487 ) on Thursday June 02, 2016 @10:28AM (#52233043)
    This is going to be a real challenge to people want to build new renewable sources. Would you want to build a solar plant if it produces energy at a time that you can't sell it, and produces little at times when the prices are highest. (Nice if you want to sell storage systems though).
    • It depends on to what extent you can adapt your electricity usage to take advantage of excess electricity during the daytime.

      In much of the US, peak electrical usage is during the summer, due to air conditioning loads. The worst heating loads are on sunny days at mid-day, and it turns out to be relatively simple to design air conditioners to store cool for a few hours*, so you can adapt the air conditioning electrical usage to use energy in the mid day and then continue cooling houses during the evening and

      • *water has high heat capacity (as well as high latent heat of fusion) and thus stores cool very well; and is both cheap and environmentally benign.

        The use of windmills to pump irrigation water is not entirely uncommon, less common is using that water to cool a barn or workshop although it is done. They pipe the irrigation water which depending on where you are can be very cool {it's usually below 60f in my area year round} through a radiator with a blower before it goes into storage tanks, etc.. and is used to irrigate.

    • Why not make it into H2 and export it?

      • In the long term this may make sense. In the immediate case, there are a number of practical problems. The two big ones are:
        1. There isn't an infrastructure to use hydrogen,
        2. Hydrogen electrolysis on an industrial scale isn't a well-developed technology (because there's no push for it-- current hydrogen production is by stripping H from methane, and right now methane is very cheap). Since it's not a commercial technology, there hasn't been a development process to make it cheap and efficient.

      • Why not make it into H2 and export it?

        Because it requires a large infrastructure to actually separate and use that H2 and that infrastructure is unlikely to be economically viable because of the inherent inefficiencies of using hydrogen as an energy store.

      • Because storing and transporting H2 is a goddamn nightmare?

        Good luck with those ever-embrittling tanks and pipelines with H2 leaking directly through their solid walls....

    • That's where subsidies come in. You don't think that these project didn't anticipate this did you? The entire point is to build out systems to the point where you price out companies with high ongoing costs.

  • Aluminum (Score:5, Interesting)

    by Scottingham ( 2036128 ) on Thursday June 02, 2016 @10:35AM (#52233097)

    Why not create some aluminum recycling factory? Those are pretty energy intensive. They could scale their operations based on excess demand. Perhaps even solely to create aluminum-air batteries.

    • Re:Aluminum (Score:4, Informative)

      by Radical Moderate ( 563286 ) on Thursday June 02, 2016 @12:21PM (#52234235)
      Aluminum refining is energy intensive. Recycling, not so much. Recycling scrap aluminium requires only 5% of the energy used to make new aluminum. [wikipedia.org]
    • Re:Aluminum (Score:5, Informative)

      by orzetto ( 545509 ) on Thursday June 02, 2016 @02:03PM (#52235201)

      Last year I saw a presentation by the head of Technology Development of Hydro [hydro.com], which has aluminium electrolysis as one of their core businesses. He proposed the same thing you do, using aluminium as an energy carrier: make aluminium (primary production though, not recycling) where you have power, then transport aluminium instead of setting up expensive DC subsea cables.

      Since I work in renewables and hydrogen, I asked him if this could be done for wind power; it could not, because aluminium factories require an enormous amount of steady power. If power is interrupted, not only production stops, but the electrolysis cells solidify and cannot be restarted: this is a damage that requires hundreds of millions of dollars and months of lost production to fix. For example, this happened when the Qatalum, Qatar plant went offline [aluminiumtoday.com].

      So, intermittent renewables such as solar and wind are not a good match for aluminium, because it requires constant power. Hydro power is a better match.

      • Hmm, I wonder if solar molten salt storage could serve as a hedge against the cells solidifying. Or grid backup.

        That is a great insight though, thanks!

  • by LWATCDR ( 28044 ) on Thursday June 02, 2016 @10:39AM (#52233133) Homepage Journal

    People see this as a good thing but it actually points out the big problem with solar.
    It produces a lot of power at non-peak times and almost no power at peak usage time and none at other times.
    So in the morning when everyone is getting up and turning on TVs and cooking solar makes very little of power. At noon it makes way more power than is needed. Then in the evening when people are coming home, doing laundry, cooking, and taking showers solar makes little to no power. Then over night you get no power.
    Frankly solar is just not going to be practical until a storage method is worked out. IMHO Solar is about useless except in some specific locations. Wind is a much better bet for renewables. Hydro is great but we have really used most of it.

    • Re: (Score:2, Informative)

      by pastafazou ( 648001 )
      Wind is extremely unreliable. Look at Britain when they had a two week spell with zero wind generation because of a country-wide lull in wind. At least solar you can bank on being there in advance. Check the weather forecast for the next few days, and you know roughly how much you can expect to be produced. And if it's in a region such as a desert where cloudy days are a rare occurrence, you can guarantee daily production for 350+ days of the year.
      • by LWATCDR ( 28044 )

        ". Check the weather forecast for the next few days, and you know roughly how much you can expect to be produced."
        Same is true for wind.
        Yes you can have lulls but solar only makes power for around 8 hours a day and the peak never matches usage.
        Solar is about useless, wind is better, but nuclear is the best solution for low carbon power generation.

        • No, you can't check the forecast and know that the wind will be blowing on your turbine at 15km/h for 7 hours. Even when the wind is blowing, it isn't necessarily blowing on the turbine. When the sun shines, it shines down everywhere, at a predictable rate. When the wind blows, it can be along the ground, it can be higher altitude, it can be in gusts and spurts, it can be diverted by terrain, it can be influenced by changing surface temperatures. I can take a drive along highway 401 on my way to Windsor
    • Maybe we should all adjust and get up at noon.

    • by pz ( 113803 ) on Thursday June 02, 2016 @10:58AM (#52233331) Journal

      Your model of energy usage is lacking the majority daytime use: commercial and industrial. These uses match insolation (and therefore available solar-based power) pretty well, it turns out.

      Here's a very, very simple part of it: cooling office buildings. Mostly, that needs to happen when the sun is shining, because that's when (a) the building is being warmed by the sun, and (b) the building is occupied by people who want it cooler.

    • by jchoyt ( 729301 )
      The midday brown-outs during summer months here in VA contradict your conclusion.
      • by LWATCDR ( 28044 )

        Actually I bet you do not have many brownouts at noon and that they start around 3 to 4 PM.
        Peak load tends to start around 3PM and runs to around 8PM. The hottest part of the day and the time when people are coming home and cooking and such. BTW production of power from PVs really drop off starting around 4PM in the summer.

    • You are talking about photovoltaiks? Then you are wrong as they produce power during peak times. E.g. in Germany People put PV panels on roofs that point in random directions east or west, and not only south.

      Or do you mean solar thermal? Then you are wrong because they store power in heat storages and produce power also at night (where you have a low power demand) and in the next morning when you need morning "peak".

    • So, these were built for the commericial mining industries, but you're talking about how nobody is home during the day? Guess what? They're at those mining operations.

      A little context would be good for you.

    • The real problem with solar is the areas of the world that are the best for producing solar energy are a long way from the population centers that that would consume the energy, requiring the construction of massive power transmission lines, can you say NIMBY, or the creation of some other way to transport the energy, maybe hydrogen if someone can figure out how to scale hydrogen production and the logistics of transportation.

      Yes, Germany has many small scale solar production facilities near population cent

    • What we need is for the world's environmentalists to realize that energy storage and infrastructure projects are more important the solar cells and wind farms themselves.

      When an environmentalist engineer says to an environmentalist politician that "This $100 million solar farm will be useless unless we also invest $500 million in energy storage and infrastructure" the response will always be "Why are you bashing solar cells? I'm firing you and replacing you with someone who cares about the environment." rat

      • by slew ( 2918 )

        When an environmentalist engineer says to an environmentalist politician that "This $100 million solar farm will be useless unless we also invest $500 million in energy storage and infrastructure" the response will always be "Why are you bashing solar cells? I'm firing you and replacing you with someone who cares about the environment." rather than "OK, I guess I'll have to find another $500 million in funding".

        Then that environmentalist "politician" probably won't be able to produce that $100M in funding either.

        I'm sure a *real* politician would immediately know that this whole thing is a $700M** solar farm project because *real* politicians have PR staffs that know when you are selling things, the ribbon makes the package...

        If there is a solar construction company that wants to construct the $100M project designed by some environmentalist enginerd, I'm sure there's another construction company that would happily

    • People see this as a good thing but it actually points out the big problem with solar.

      No it doesn't, it points out the big problem with not having a decent worldwide electrical grid. The world is always using power, if the transmission capability existed to get that power to the people who need it now then your "problem with solar" is not a problem. It's not a problem with how the power is produced, it's a problem with where the power goes once you produce it. The world doesn't shut off at night, because it is never night across the entire world. You can always produce solar power, and y

      • by LWATCDR ( 28044 )

        "Wrong solution. Connect world power grids and you don't have to store anything until the world produces more power than it uses (in which case, what's the point of storing it?)."
        Get back to me when you figure out how to run a grid across the oceans. and put solar cells in the middle of the Atlantic and pacific to make that 24/7 power work out for you. Take a good look at a map and you will see that there is a whole lot of ocean.

    • Putting a Powerwall [teslamotors.com] in every home should help.
    • Industrial uses of energy use up a lot more than consumer uses. The average aluminum smelting plant can use hundreds of Megawatts.

      • by LWATCDR ( 28044 )

        " The average aluminum smelting plant can use hundreds of Megawatts."
        And those run 24/7 which will not work for solar at all.
        BTW that is also why the are often located near dams for cheap hydro power. See Iceland for example.

  • Funny, whenever I have chili, I produce natural gas. I also give it away for free, by the way.

  • How about they build a massive copper cable to the other regions of the country that don't have as good an electricity source. Then they get to recoup their costs on building the solar plants, and they get to run those copper mines.

    • You do realize that the copper cable would need to be over 1000 miles long to get to Santiago and Valparaiso. That would be like producing electricity in Oklahoma and using it in Chicago. Canada does it for Hydro produced in northern Quebec but it ain't cheap or easy. T

      • So? They have two industries that are hurting. They can help both with a fairly simple plan. Now, it may be better to send the electricity to a nearby country or something instead of transferring it internally - I don't know who could use it most, or what's most cost-effective - but it seems like a sensible plan either way.

        • Sensible is relative, look at the geography of Chile, the distances involved and the relations with their neighbors, then get back to me about sensible. In the time it would take to build the lines you would probably go through more than one bubble/downturn in the copper/lithium markets.

          Building transmission lines is more than just having the copper available. You need the factories to build the cable, steel for the towers, right of way for the lines. All doable but not something that can be create quickl

  • there is over supply due to lower demand from copper mines.
    that does not mean cost of production is zero.
    they are simply selling at a loss, because demand dried up.
    if this is not temporary, they will stop producing.

    as such this is not a good example advocating increasing sustainable solar energy.

    • by Vihai ( 668734 )
      It solar there is subsidized the way it is in Italy they will keep producing because they will get paid a lot even if the market value of energy is zero.
  • by ytene ( 4376651 ) on Thursday June 02, 2016 @10:45AM (#52233203)
    I guess we've known this problem would come along at some point...

    With absolutely no knowledge of the technical feasibility of them, how about applying these two solutions?

    1. Split Water Into Hydrogen and Oxygen
    Could they use the electricity to store energy in the form of hydrogen? This could then be burned in fuel cells to generate electricity more readily, i.e. on demand, perhaps through the night when solar doesn't work? I guess the two issues with this are (i) the volatility/inflammability of hydrogen; and (ii) the fact that burning the hydrogen is exothermic and therefore contributes to warming...

    2. Potential Energy Pumps
    In the UK we have some minor success, with power stations like Loch Awe in Scotland, in which the turbines can be reversed into electric motors and can be used to pump water up a gradient. To make this work you need 2 lakes, one above the other [i.e. on sides of a mountain]. With a solar surplus in the day you use the energy to pump water from the lower lake to the higher one. When you have an electricity shortfall you allow the process to reverse, using gravity and falling water to generate electricity via hydroelectric power.

    Both of these solutions are flawed and, to variable extents, inefficient. But they do work. If we put investment into good R&D on these sorts of challenges today, then they will become more refined with time...
    • It is extremely unlikely that they reverse the turbins (and they likely don't even use turbins for power generation)
      More likely they have real pumps for that.

      With a solar surplus in the day you use the energy to pump water from the lower lake to the higher one.
      That might be a bit tricky in desert

      (ii) the fact that burning the hydrogen is exothermic and therefore contributes to warming...
      Our warming probelms are from CO2 not from the very limited amouont of heat we produce.

      Both of these solutions are flawe

    • by raymorris ( 2726007 ) on Thursday June 02, 2016 @12:33PM (#52234377) Journal

      As you mentioned, pumping water up hill requires specific geography - the same as hydroelectric, basically. Hydroelectric is pretty cool, so that's been done in the locations it can be done. It covers 1%-2% of our energy needs. For the US as an example, 48 hours of energy storage would require flooding most of the US west of the Mississippi river. It works on a small scale, can't ever be a primary source of energy.

      In 7th grade I wrote a paper about splitting water into hydrogen and oxygen and I was excited about the prospect. Since then, I've learned that hydrogen is a bitch. Without going into details, it's a bitch to store, a bitch to transport, and not particularly efficient. However ...

      The general concept of combining hydrogen and oxygen to release energy does work extremely well, if you add one other ingredient. In fact, it is the world's primary method of energy storage and transportation. Along with the hydrogen, you add carbon, creating hydrocarbons. (Combining them the other way around produces carbohydrates, the energy source your body uses). We know hydrocarbons are a very effective way to store and transport energy, and the infrastructure is already in place. Perhaps we could do almost exactly what nature does. Perhaps we could PRODUCE hydrocarbons using atmospheric carbon and solar energy. So the produces turns atmospheric CO2 and H20 into hydrocarbons and oxygen, the car or factory burns the hydrocarbon back into C02 and water, in a cycle. That's exactly what nature does with carbohydrates - plants convert Co2 and H20 into carbohydrate using solar energy, animals convert it back, in a balanced cycle. I know of no reason we couldn't have a similar balanced cycle for hydrocarbons, using solar energy to capture atmospheric C02 into hydrocarbons.

  • Simple Solution (Score:4, Insightful)

    by pastafazou ( 648001 ) on Thursday June 02, 2016 @10:46AM (#52233205)
    Use some of that surplus copper to build new transmission lines
    • by wwalker ( 159341 )

      Well, it's not that simple. Considering that high-voltage transmission lines don't use any copper these days.

  • by Fallen Kell ( 165468 ) on Thursday June 02, 2016 @10:47AM (#52233211)
    I mean seriously. Invest in the infrastructure to build high capacity, high efficiency transmission lines to other regions and even countries and sell that power instead of give it away for free.
  • What this means is that in a couple of years they will dismantle a lot of it and the used panels flooding the market will drive the solar panel prices down even further. When I had a solar powered home I had some used panels from south america and got them at 10% of the price of new. This was in the days before ebay and internet and I had to pay for trucking and customs to get them here.

    This is a WIN-WIN for the small guy!

  • ...worthless copper for worthless electricity?

    No?

  • Do they change every hour? Every minute? Free electricity sounds great in a headline unless you find out in the small print that it was only free for 30 minutes starting at high noon.
  • by evolutionary ( 933064 ) on Thursday June 02, 2016 @12:05PM (#52234073)
    you'd think that people be saying "Hey Chilli, this is exciting" instead people who have invested in old methods of power production are complaining prices are too cheap. "we're losing money" Well...that is called risk. Hard to believe they didn't see this coming. No one is talking about people getting so accustomed to cheap power, or becoming gluttons with power, it's other people's bad investments first. the innovation we truly need right now is public awareness and social responsibility. instead, when something comes along that could be an overall public good, people come in and say, but it's not good for me. We have a long way to go as a species.
  • Free Bitcoin mining during peek hours? Maybe Chile can get some startups moving into that space.

  • by hey! ( 33014 ) on Thursday June 02, 2016 @12:28PM (#52234311) Homepage Journal

    Copper and other non-ferrous metals (including gold) are a huge part of the economy of northern Chile. Which also happens to be where you find the Atacama, one of the places on Earth where sunshine is most reliably abundant. Oh, and vast stretches of unpopulated coastline where you can pretty much stick a pin anywhere and build a shipping terminal without there being any neighbors to complain about it.

    And there happen to be methods for efficiently and relatively cleanly separating valuable metals from ore using electricity -- gobs and gobs of electricity so it had better be cheap. It has to be competitive with the nastier, cruder methods like mashing the ore into a pulp with lots and lots of cheap cyanide. So it's real easy to picture a future in which ore from the mountains is processed essentially on site using cheap solar electricity from nearby desert power stations, and then is shipped out in refined form.

    But there's a catch-22. You can build your giant electrowinning plants until you have a big, cheap, reliable electricity supply. You've got to build that first. Which means there's a period between when you build your big solar plants and when investors build their electricity-hungry plants where you get a hell of a lot of kilowatt hours of electricity being generated that nobody has a use for. You literally can't even give it all away, but that generation capacity will have you rolling in pesos in a few years.

  • Abundance of cheap energy, Copper production, global glut of same, lack of transmission lines.

    Hmm. Opportunity?

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