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An electric generator is a device that converts a form of energy into electricity. There are many different types of electricity generators. Most electricity generation is from generators that are based on scientist Michael Faraday’s discovery in 1831. He found that moving a magnet inside a coil of wire makes (induces) an electric current flow through the wire. He made the first electricity generator, called a Faraday disk , which operates on the relationship between magnetism and electricity and led to the design of the electromagnetic generators we use today.

Electromagnetic generators use an electromagnet —a magnet produced by electricity—not a traditional magnet. A basic electromagnetic generator has a series of insulated wire coils that form a stationary cylinder—called a stator —surrounding an electromagnetic shaft—called a rotor . Turning the rotor makes an electric current flow in each section of the wire coil, and each section becomes a separate electric conductor. The currents in the individual sections combine to form one large current. This current is the electricity that moves from generators through power lines to consumers. Electromagnetic generators driven by kinetic (mechanical) prime movers account for nearly all U.S. electricity generation.

Turbine driven generators

Most U.S. and world electricity generation is from electric power plants that use a turbine to drive electricity generators. In a turbine generator, a moving fluid—water, steam, combustion gases, or air—pushes a series of blades mounted on a rotor shaft. The force of the fluid on the blades spins (rotates) the rotor shaft of a generator. The generator, in turn, converts the mechanical (kinetic) energy of the rotor to electrical energy. Different types of turbines include steam turbines, combustion (gas) turbines, hydroelectric turbines, and wind turbines.

Diagram of an electric turbine generator.

Source: U.S. Energy Information Administration (public domain)

Steam turbines are used to generate most of the world’s electricity, and they accounted for about 42% of U.S. electricity generation in 2022. Most steam turbines have a boiler where fuel is burned to produce hot water and steam in a heat exchanger, and the steam powers a turbine that drives a generator. Nuclear power reactors use nuclear fuel rods to produce steam. Solar thermal power plants and most geothermal power plants use steam turbines. Most of the largest U.S. electric power plants use steam turbines.

Combustion gas turbines , which are similar to jet engines, burn gaseous or liquid fuels to produce hot gases to turn the blades in the turbine.

Steam and combustion turbines can be operated as stand-alone generators in a single cycle or combined in a sequential, combined cycle . Combined-cycle systems use combustion gases from one turbine to generate more electricity in another turbine. Most combined-cycle systems have separate generators for each turbine. In single-shaft combined-cycle systems, both turbines may drive a single generator. In 2022, combined-cycle power plants supplied about 34% of U.S. net electricity generation .

Combined-heat-and-power plants (CHP) and cogenerators , use the heat that is not directly converted to electricity in a steam turbine, combustion turbine, or an internal-combustion-engine generator for industrial process heat or for space and water heating. Most of the largest CHP plants in the United States are at industrial facilities, such as pulp and paper mills, but they are also used at many colleges, universities, and government facilities. CHP and combined-cycle power plants are among the most efficient ways to convert a combustible fuel into useful energy.

Wind turbines use the power in wind to move the blades of a rotor to power a generator. There are two general types of wind turbines : horizontal axis (the most common) and vertical-axis turbines. Wind turbines were the source of about 10% of U.S. electricity generation in 2022.

Ocean thermal energy conversion (OTEC) systems use a temperature difference between ocean water at different depths to power a turbine to produce electricity.

Other types of generators

Many different types of electricity generators do not use turbines to generate electricity. The most common in use today are solar photovoltaic (PV) systems and internal-combustion engines.

Solar photovoltaic cells convert sunlight directly into electricity. These cells may be used to power devices as small as wrist watches, or they can be connected to form modules (or panels ). Modules are connected in arrays that power individual homes or form large power plants. Photovoltaic power plants are now one of the fastest-growing sources of electricity generation around the world. In the United States, PV power plants were the source of about 3% of total utility-scale electricity generation in 2022.

Internal-combustion engines , such as diesel engines, are used all around the world for electricity generation, including in many remote villages in Alaska. They are also widely used for mobile power supply at construction sites and for emergency or backup power supply for buildings and power plants. Diesel-engine generators can use a variety of fuels, including petroleum diesel, biomass-based liquid fuels and biogas, natural gas, and propane. Small internal-combustion-engine generators fueled with gasoline, natural gas, or propane are commonly used by construction crews and tradespeople and for emergency power supply for homes.

Other types of electricity generators include fuel cells , Stirling engines (used in solar thermal parabolic-dish generators) , and thermoelectric generators .

Energy storage systems for electricity generation include hydro-pumped storage, compressed-air storage, electrochemical batters, and flywheels. These energy storage systems use electricity to charge a storage facility or device, and the amount of electricity they can supply is less than the amount they use for charging. Therefore, the net electricity generation from storage systems is counted as negative in EIA reports ( Electric Power Monthly and Electric Power Annual ) to avoid double counting electricity use for charging the storage system.

Data source: U.S. Energy Information Administration (EIA), Form EIA-923 Power Plant Operations Report , final data for 2022 Note: Sum of subtotals may not equal totals because of independent rounding of individual data series. 1 Includes generators at power plants with at least one megawatt electricity generation capacity 2 Natural gas accounted for 99% of energy sources in combined-cycle power plants and for 95% of energy sources in single-cycle combustion gas turbines. 3 Other sources include internal combustion engines, fuel cells, and binary-cycle turbines. 4 Storage systems include hydro-pumped storage, electrochemical batteries, compressed-air storage, and flywheels. The percentage share of total utility-scale electricity net generation from energy storage systems for electricity generation is shown as positive in the table above. However, generation from storage systems is published as negative net generation in EIA reports ( Electric Power Monthly and Electric Power Annual ) to avoid double counting of energy storage charging sources.

Last updated: October 31, 2023, with data available at the time of update.

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Original research article, the impact of electricity price on power-generation structure: evidence from china.

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  • 1 School of Economics, Peking University, Beijing, China
  • 2 Center for National Economics Studies, School of Economics, Peking University, Beijing, China
  • 3 Beijing Development Institute, Peking University, Beijing, China

Being affected by a variety of factors, power-generation structure plays an essential role in a high-quality and sustainable development. The focus of this paper is to evaluate the influence of electricity price on it. First, we provide a microeconomic framework to understand the impact mechanism. We discuss two effects through which price level can affect power generation, and then the power-generation structure. After that, an empirical test is conducted using provincial panel data, and the results of it are robust. We also test the above-mentioned mechanism empirically. There are two main conclusions. First, the electricity price has a positive effect on the share of thermal power in electricity generation. Second, the mechanism test shows that an increase of electricity price can not only improve efficiency of power plants but also propel firms to invest in more renewable energy plants.

Introduction

Over the past decades, the Chinese economy has been regarded as a miracle that has been growing rapidly. Along with the economic achievement goes higher energy demand. On the one hand, as non-renewable resources, fossil fuels could no longer be the main driver of development. On the other hand, electricity generated by traditional thermal power plants will generate more pollutants and carbon dioxide emissions to the atmosphere, which is inconsistent with what is expected in a sustainable society. Under the pressures of growing energy demand and the carbon emission reduction goal, promoting clean energy power generation, especially renewable energy power generation, proves to be a natural choice.

The clean energy power industry in China has experienced great changes thanks to the government’s support. In recent years, China has adopted laws, regulations, policies, and plans in renewable power sectors, such as Renewable Energy Law , Medium and Long-Term Development Plan for Renewable Energy, and Provisional Administrative Measures on the Renewable Energy Development Fund . 1 Given subsidies and good market environment, there appears to be a dramatic rise in clean power capacity. In accordance with that, the share of clean energy in aggregate power generation has increased. Figure 1A shows the newly installed capacity and cumulated installed capacity in power sectors from 2013 to 2017 countrywide. In total, China’s clean power capacity newly installed has ascended from 6047 MW in 2013–8566 MW in 2017. The rise of solar PV appears to be the largest, which has increased from 1243 to 5341 MW. The newly installed capacity of hydropower has decreased. Figure 1B descripts the cumulated capacity, showing that the cumulated installed capacity of each type has also soared over this period. Figure 2 outlines trends of current shares of clean power electricity, increasing from 21 to 29% in 5 years. In total, clean energy made up 29% of gross electricity production in 2018. In comparison, Figure 2 also shows the changes of share for thermal power-generation. It suggests that power-generation structure defined as the proportion of electricity generated by thermal power-generation plant has dropped over the years.

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FIGURE 1 . (A) Newly installed capacity (MW) 2013–2017. (B) Cumulated installed capacity (MW) 2013–2017.

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FIGURE 2 . Proportion of power generation (%) 2013–2017.

Although clean energy (except for nuclear energy) is renewable and environmentally friendly in most cases, shortcomings exist. First, the introduction of a large-scale clean power plant has a higher cost than thermal ones. What’s more, the cost of power generation from clean energy cannot be reduced significantly in the short term. Financial support from the government is necessary for the penetration of renewable energy. 2 The improvement of renewable energy power requires large amounts of money in research and development, with the characteristics of high-risk, high-investment, and uncertain-return, calling for the government’s support. Second, due to the features of clean energy, electricity generated by this mean is intermittent. Energy storage is another important technology barrier to break through. To contrast, technology innovation in thermal power generation provides the possibility of using fossil fuels in a more efficient and cleaner way. The cumulated installed capacity of thermal energy accounts for 71% of all in 2017 as shown in Figure 1B , which is still high, showing a big market share. Above-mentioned features hindered the progress of the clean energy industry, and they also play important roles in how electricity price can influence the power-generation structure.

In this paper, we use provincial data from China to measure the effect of electricity price on the adjustment of power-generation structure. Figures 3A,B provide an overview of trends in average electricity price from 2006 to 2018 and average power-generation structure from 2006 to 2017, respectively. 3 As shown in Figure 3 , the electricity price shows an upward trend. Comparing Figures 3A,B , it appears that electricity price and power-generation structure on average varied with time in opposite directions. Is there any relationship between electricity price and power-generation structure? To what extent can the rise of electricity price have an effect on power-generation structure? If this relationship holds, how does it work? To investigate these problems, we first provide a microeconomic framework to explore two possible effects of the price level. We may assume a negative relationship between electricity price and power-generation structure from time trends shown in figures, though we could not simply come to this conclusion without tests. Therefore, we then examine this relationship empirically by conducting a fixed effect panel estimation.

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FIGURE 3 . (A) Electricity price (¥/MWh) 2006–2018. (B) Power-generation structure (%) 2006–2017.

The rest of this paper is organized as follows. Literature Review reviews the literature pertinent to electricity price, the cause and consequences of renewable energy policies, and the relationship between the electricity price and power-generation structure. Theoretical Analysis presents a theoretical analysis, after which Empirical Tests shows the empirical tests. Conclusion and Discussion concludes.

Literature Review

This paper primarily belongs to the literature on the effect of electricity price and the influencing factors of the development of energy and power industry. Specifically, we review research of the relationship between electricity price and power-generation structure, which is closely related to our research.

The topic of the influence of electricity price has spurred hot discussion among scholars. Generally speaking, related studies focus on the effect of electricity price in two aspects, the production and consumption side, respectively. For the production side, He et al. (2010) showed that an increase in electricity price will decrease the total output, Gross Domestic Product (GDP), and the Consumer Price Index (CPI), using a Computable Generalized Equilibrium (CGE) model. They argue that the government is supposed to deliberate over the electricity price policy, taking all possible factors into account. Looking into the impact of electricity price policies, researchers find similar negative effects. In an attempt to relieve the pressure of power shortages, which results from the rapid growth of electricity demand, price controls are regarded as a useful short-term approach by a variety of countries. However, empirical analyses show that the electricity price has an adverse relationship with electricity demand and the performance of economic sectors ( Mirza et al., 2014 ; Kwon et al., 2016 ). The cross subsidy policy has also received lots of critiques ( Moerenhout et al., 2019 ; Pu et al., 2020 ). However, Jia and Lin (2021) show that, under simulated counterfactual scenarios of cross subsidy elimination, CO 2 emissions, industrial structure, as well as social welfare get worse, in spite of the improvement of economic performance. Considering the attributes of an export-oriented country like China, removing cross subsidies may not prove to be good. In addition, the conclusions of recent studies have provided evidence for the rationality of differential electricity pricing (DEP), under which policy firms are compelled to accelerate equipment upgrades, and energy-intensive industries are stimulated to make technological improvement ( Yang et al., 2021 ; Zheng et al., 2021 ). This is consistent with the findings of positive relationship between a raise of electricity price and a boost in industrial competitiveness or total factor productivity (TFP) ( Mordue, 2017 ; Elliott et al., 2019 ; Ai et al., 2020 ). Moreover, the electricity price is found to have a long influence on renewable energy (RE) innovation ( Lin and Chen, 2019 ). For the consumption side, BuShehri and Wohlgenant (2012) estimated the welfare effects of a subsidy on electricity and showed that a small increase in the price of electricity can reduce annual consumption and consumers’ welfare, meanwhile providing financial and environmental benefits to the society. Study indicates that increasing-block power tariff is effective in mitigating rebound effect. Price increment results in less subsidy and deadweight loss, but it causes a loss in welfare ( Lin and Liu, 2013 ; Wang and Lin, 2021 ). Above all, there is still room for improvement for electricity price policies.

Considering the increasingly large population with dramatically increased demand and serious concerns about environmental pollution including carbon emissions, an increasing number of countries have realized the vital role RE plays in the generation of electricity ever since the 20th century. In order to boost the development of RE, a variety of supporting laws, regulations, and plans have been promulgated. Some researchers have provided thorough review of the main policies ( Zhao et al., 2011 ; Hu et al., 2013 ; Zhao Z.-Y. et al., 2016 ; Jamil et al., 2016 ). Focusing on the carbon emissions trading (CET) system, Cong and Wei (2010) investigated its potential effect on China’s power sector. The results show that the introduction of CET will significantly raise the proportion of environmentally friendly technologies, especially for solar energy. Although it is proved that supporting policies are significantly related to the booming of installed capacity, the existing barriers for RE industry should not be ignored, for example, the discrepancy between the growth of RE plants and their contribution to electricity generation, which is partly due to the deficiency in power grid system. Based on detailed analysis on a wide range of policies, suggestions are presented such as conducting a renewable portfolio standard mechanism, updating technological progress of grid system, reforming electricity price mechanism, etc. ( Wang, 2010 ; Wang et al., 2010 ; Zhao, 2011 ; Ouyang and Lin, 2014 ).

In addition to political factors, the development of energy and power industry is also influenced by other factors. According to systematic analysis, Alagappan et al. (2011) and Biresselioglu et al. (2016) showed the importance of political, economic, and environmental factors on RE capacity development. Schmid (2012) and Jenner et al. (2013) applied the fixed effect model to the influence of impact factors. They suggested that a well-performed policy should be designed together with market context and the interaction between them. The subject of the policy effect has attracted much attention, while the price effect has received less. When it comes to the influence of electricity price, recent studies often regard it as one of the economic factors controlled. Studies measure the energy and power industry performance by using either cumulated capacity or the proportion of capacity and power generation. The influence of electricity price is ambiguous if it is solely analyzed in theory. The empirical results differ as a result of different data source or model specification. Carley (2009) shows that the increase of electricity price significantly reduces the ratio of RE in power generation. The results of Shrimali and Kniefel (2011) indicated the opposite. Zhao X. et al. (2016) compared price policies and non-price policies and showed that the former has greater effect on wind power development. Furthermore, price policies have larger influence in areas with poor wind resources, and non-price policies the opposite. To sum up, effective policies and healthy market environment combine to encourage the advance of energy and power industry. The design of related policies is supposed to take incentive as priority and deliberately incorporate environmental considerations.

The energy and power industry around the globe has experienced great changes since the 20th century. Furthermore, the marketization of energy and power industry differs among countries and regions ( Kagiannas et al., 2004 ). As a result of varying degree to which the electricity price is regulated, research methods and goals depend. In some countries, competition has been set in motion by fostering a competitive electricity spot market. By estimating the relationship between daily average electricity price and electricity generation from a variety of sources, some empirical studies have provided the evidence of the merit order effect. Furthermore, their findings indicate that the rise of RE power generation can result in the fall of electricity price, whilst the influence of RE power generation on the volatility is diverse among Germany, Italy, and Australia ( Tveten et al., 2013 ; Cludius et al., 2014 ; Clò et al., 2015 ). Ketterer (2014) employs a GARCH model to evaluate how the level and volatility of the electricity price are affected by wind electricity generation, and they show that wind power can reduce the price levels, meanwhile amplifying the price volatility. With respect to China, the electricity price has been regulated for a long period of time, despite that the Chinese government has promulgated a series of laws, regulations, and plans to deregulate the electricity price progressively ( Liu et al., 2019 ).

Although studies show that electricity price could be an instrument to trigger the development of renewable energy power generation, fewer studies consider the impact of electricity price on power-generation structure. In this paper, we will conduct both a theoretical and an empirical analysis to investigate this relationship.

Theoretical Analysis

In this section, we provide a microeconomic theoretical model to illustrate the mechanism how the electricity price affects the power-generation structure, which can be described as the ratio of electricity generated by thermal power plants.

There are two types of power-generation plants, namely thermal power-generation plant and clean power-generation plant. A set of plants is characterized by its fixed cost F C and variable cost function V C ( q ) , where q is the quantity of power generated. For either type of power-generation plant, we suppose that they only differ in their fixed cost, and the variable cost functions are identical. The variable cost function of thermal power-generation plant is denoted by V C t h ( q ) , and that of clean power-generation plant is denoted by V C c l ( q ) . Moreover, the marginal cost is denoted by M C t h ( q ) and M C c l ( q ) , respectively.

The fixed cost of power plant is distributed in the market, whose density functions are denoted by f t h ( ⋅ ) and f c l ( ⋅ ) , and the cumulated distribution functions are denoted by F t h ( ⋅ ) and F c l ( ⋅ ) . In general, the fixed cost of clean power-generation plant is higher than that of thermal power-generation plant. For example, on the one hand, in 2009 the unit cost of large-scale thermal power generators does not exceed 5,000 yuan/kW, while the unit cost of wind turbines is about 8,000 yuan/kW, and the unit cost of hydropower exceeds 10,000 yuan/kW. On the other hand, the construction period of thermal power is relatively short. In 2009, the construction period of thermal power stations is generally 2–3 years, while that of hydropower stations is as long as 5 years. In contrast, the variable cost of generation from clean energy, especially for renewable energy, is much smaller than most of the fossil fuels.

For each set of plant, the firm solves the optimization problem,

where p is the electricity price and π i ( e x i t ) is defined as 0 . Moreover, the fixed cost F C is 0 if the firm possesses the plant, and F C follows the distribution F i ( ⋅ ) if the firm does not possess the plant for i ∈ { t h , c l } . Clearly, a firm chooses to buy a set of plant if and only if

Comparative Statics

First, we consider the influence of an increase in the electricity price. It triggers two effects on the equilibrium quantity. The electricity price can affect the generation of both thermal power and clean power sector, thus influencing the generation mix. In our analysis, they are defined as the efficiency effect and the entrance effect.

On the one hand, if the firm possesses the plant, it will never choose to exit since the fixed cost of the plant it already has is zero. Moreover, the equilibrium quantity satisfies the first-order condition, p = M C i ( q ) , which implies that there will be an increase in q because of the monotonicity of the marginal cost. This can be viewed as an efficiency effect, which can be reflected by an increase in the average utilization hours. On the other hand, if the firm does not possess any plant, an increase in electricity price can drive the firm switch to buy the plant and produce a positive quantity of power. This can be viewed as an entrance effect, which is reflected by an increase in the number of generation plants to be introduced. Figure 4 shows the second effect mentioned above.

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FIGURE 4 . (A) Efficiency effect (B) Entrance effect.

The power sector can be divided into two groups. One is the thermal power sector, which generates electricity using fossil fuels, during which process considerable pollutants and emissions are exhausted. The other is the clean power sector, the generation process of which is thought to be environmentally friendly and is much cleaner. Broadly speaking, these two sectors constitute the entire power sector.

For the efficiency effect, there are two main concerns. On the one hand, the rise of price can stimulate power sectors to produce more electricity. Although the variable cost of clean energy is smaller or even close to 0, the production of electricity heavily depends on an appropriate climatic condition. Hence, it is hard to infer the changes of the power-generation mix. On the other, due to historical reasons, the market share of thermal power is greater than that of clean power. This situation that thermal-generation technology is maturer compared to clean power implies that the efficiency effect of thermal power dominates that of clean power, i.e., a rise in electricity price leads to larger change on the average utilization hours of the thermal power sector than clean power. The aggregate efficiency effect is unclear. Note that, for both the thermal power and the clean power sector, an increase in electricity price has a positive effect on the average utilization hours with the decline of marginal cost.

We then discuss the entrance effect, which provides incentives to buy a new plant. It is known that the fixed cost of a hydropower generation plant is much higher than a thermal power plant in the early stages of development. On the decision margin, the revenue of plant equals to 0 , which requires that F C t h = p ⋅ q t h − V C t h ( q t h ) and F C c l = p ⋅ q c l − V C c l ( q c l ) . The fact that F C c l ≫ F C t h implies that q c l ≫ q t h , as a result, the rise of F C c l on the decision margin caused by an increase in p , which is denoted by ΔFC cl , is much higher than that of F C t h , which is denoted by Δ F C t h . The increase in the generation power can be characterized as F i ( F C i + Δ F C i ) − F i ( F C i ) ≈ Δ F C i × f i ( F C i ) for i ∈ { t h , c l } . On the other hand, it is natural to assume that the density function is thinner when the fixed cost F C i is higher. The fact that F C c l ≫ F C t h , as well as the assumption, implies that the thermal power-generation has a higher density on the decision margin, i.e., f t h ( F C t h ) ≫ f c l ( F C c l ) . The relative consequences of the rise of the fixed cost and the density function are opposite, which results in an unclear comparison between the entrance effect of clean power and that of thermal power. That means, compared to the thermal power sector, the strength of the effect on the introduction of generation plant in the clean power sector caused by an increase in electricity price can be either stronger or weaker by the theoretical analysis, which is determined by the parameter setting in the actual production.

Combining these two effects, which differ in thermal and clean power sector, we propose that taking both the efficiency effect and the entrance effect into consideration, an increase in electricity price may have an influence on the power supply structure. In the next section, we will empirically explore the impact of electricity price on power-generation structure using provincial data from China.

Empirical Tests

In Model Specification , we specify the estimation framework and clarify the meaning of variables. In Data Sources and Descriptive Statistics , we show the data sources and descriptive statistics. In Basic Results and Robustness , basic results are presented, and we then discuss the results of robustness. In Mechanism Tests , two effects are estimated.

Model Specification

According to the theoretical analysis in Theoretical Analysis , we propose that there are two channels of electricity price may influence thermal power and clean power sector, which are viewed as efficiency effect and entrance effect. However, the aggregate effect of electricity price is ambiguous. In order to investigate the aggregate impact on power-generation structure empirically, we adopt the econometric framework illustrated below.

where l n g e n r a t i o i t is the power-generation structure variable for province i in year t , and l n p r i c e i t is the core independent variable we focus on, that is, the electricity price. X i t are a set of controls varying with province and time, for which we choose economic scale, industrial structure, and degree of population agglomeration. γ i are provincial fixed effects, δ t are year fixed effects to control for year-level shocks which may affect all provinces, and ε i t is an error term.

For the core independent variable, we use the annual average electricity sales price in each province as a proxy variable. To illustrate, as the annual average sales price incorporates the information of on-grid prices of various energy sources, it is more appropriate for us to adopt it as the proxy variable for the price analyzed in the theoretical model. Later in the mechanism test, we then adopt the on-grid price of wind power to further investigate the entrance effect. On account of the fact that the deregulation process of electricity prices in China is still in process, and most of the prices are still determined by the government based on various factors, not determined by supply and demand daily in a price market, we regard the electricity price as an exogenous variable in our analysis.

Except for electricity price, some other economic factors are also considered as potential variables to explain power-generation structure, based on the following assumptions. First, real GDP could be regarded as a measure of regional economic scale. The higher costs of renewable energy relative to fossil fuels can be overcome by regions with higher economic scales. Second, the proportion of secondary industry as in output value could reflect regional industrial structure. The type of downstream industry will also affect the generation mix. Third, we use urban population density to indicate degree of population agglomeration. It is expected that regions with higher population density tend to have less space for the promotion of renewable energy plants such as giant wind turbines and large hydroelectric power stations. Accordingly, we also include these variables in our estimation as control variables.

Data Sources and Descriptive Statistics

In our estimation, power-generation structure is defined as the proportion of electricity generated by thermal power-generation plant. For the core independent variable, we focus on the electricity sales price, which is set by the government. Price policies are unified in each province and determined according to the factors that can constitute the electricity price. In addition, we use the on-grid price of wind power for the mechanism test. Due to the lack of data in Tibet Province, we could not include it in our estimation. In addition, Hong Kong, Macao, and Taiwan are not included since price policies are different in these regions. Missing variables in prices are filled in by interpolation. In our mechanism test, we use average utilization hours as a measure of efficiency. For the control variables, real GDPs are calculated at constant prices in 2005.

We get the data of prices and average utilization hours from WIND Economic Database, electricity capacity, and generation data from the China Electric Power Yearbook , and the data of controls from Chinese Research Data Services (CNRDS) Platform. To construct our samples, we use variables from 2006 to 2018. In our basic estimation and mechanism test, data span from 2006 to 2017 and from 2007 to 2018, respectively. Table 1 shows some basic characteristics of our data.

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TABLE 1 . Summary statistics.

Basic Results

In order to figure out the influence of electricity price on power-generation structure, we estimate it by using Eq. 3 . Table 2 reports the basic results of our regression. The first column shows the result without control variables. Column 2 includes economic scale, and Column 3 adds all three control variables. According to basic results, the coefficient on price level is significantly larger than zero. It shows that the increase of electricity price significantly lifts up the thermal power ratio. This conclusion holds when we add other potential influencing factors. As is shown in Column 3, a 1 percentage point increase in electricity price is associated with a 0.17 absolute increase in power structure. The empirical results indicate that the efficiency effect exceeds the entrance effect. In other words, the electricity generated from thermal power sector due to larger efficiency improvement surpasses the electricity from newly installed renewable energy plants attributed to the entrance effect. The influences of the efficiency effect and the entrance effect require further exploration, which we will discuss later in Mechanism Tests .

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TABLE 2 . Fixed-effect estimation.

Furthermore, the economic scale is negatively related to power-generation structure. Column 3 illustrated that a 1 percentage increase in GDP per capita can reduce the proportion of thermal power generation as share of total generation by a 0.17 absolute value. This provides empirical evidence for our assumptions that the economic scale plays a role in the development of non-fossil fuel power industry. The industrial structure and population agglomeration appear to be insignificant.

Additional Control Variables

Except for economic factors, the power-generation structure can be influenced by its resource reserves. The introduction of a power-generation plant is partly related to resource endowment, for example, provinces with large water resources reserves provide a good environment for the development of hydroelectric power stations. For instance, if a region is abundant in surface water reserves, it has greater potential to introduce hydroelectric power stations and to develop clean energy. Considering the influence of omitted variables on the regression result, water resources reserves and coal resources reserves are added in our regression. As in the first three columns in Table 3 , the coefficient on electricity price is still significantly positive, and smaller than that in the basic result. The basic results are robust with the addition of other variables.

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TABLE 3 . Robustness tests.

Change Time Span

The transmission and distributional price is the prominent difference between the electricity sales price and on-grid prices. In order to promote the reform of electricity power market, one of the key tasks is to separately approve the transmission and distribution price for electricity, according to Several Opinions on Further Deepening the Reform of the Electricity Power System No. 9 Document and Implementation Opinions on Promoting Transmission and Distribution Price Reform . As is stated in these policies, the total permitted revenue and transmission and distribution price of the power grid companies should be in accordance with the principle of “permitted costs plus reasonable benefits.” Under this circumstance, the electricity sales price will be in line with the on-grid prices, and the former can be a better proxy in our estimation.

Since 2015, the government has gradually expanded the scope of pilot regions. In 2006, most of the provinces in China have successively carried out this reform. We figured out the pilot regions each year and formulated a new data set, where all provinces have conducted the above-mentioned electricity price reform. The fourth and fifth columns in Table 3 show the results. During this short period, the time fixed effect is supposed to be insignificant. Thus, we only include the province fixed effect in this estimation. 4 The effect of electricity price is still positive with a smaller coefficient as compared to the corresponding basic estimation, indicating the robustness of conclusion in our basic results.

Mechanism Tests

As is discussed in Theoretical Analysis , the direction of impact on the power-generation is ambiguous. Electricity price may affect power-generation structure via two channels. For the efficiency effect, either thermal or clean power-generation plant tends to improve its working hours as price level rises. Due to historical reasons, thermal plant occupies a huge market share and has more mature technology than clean ones. 5 Although the variable cost of clean energy is lower than that of thermal power, the power generation generated by clean energy (except for nuclear power energy) is highly dependent on weather conditions. Thus, the specific direction of the efficiency effect requires testing. In terms of the entrance effect, we propose that any type of plant has incentives to enter the market as a result of the price increase. However, the aggregate entrance effect considering the thermal power and clean power sector is ambiguous. Above all, the aggregate effect is uncertain. In this section, we estimate two effects in turn.

Efficiency Effect

The baseline results show that the price level and power-generation structure move in the same direction. Based on Eq. 3 , we re-estimate by replacing the dependent variable by average utilization hours in thermal power-generation plant and in all power-generation plant. Results are shown in the first two columns of Table 4 . Column 1 indicates that the rise of electricity price has a positive effect on average utilization hours. This result stands not only for thermal plant but also for all power-generation plant. The coefficient in Column 1 is larger than in Column 2, showing a large impact of electricity price on thermal power-generation plant. These results point out that a rise in price level can lift up the average utilization hours of thermal power plants. Meanwhile, the impact on total average utilization hours is also positive. There are two implications here. One is the great advance of power generation technology for fossil fuels. The other is that the potentials in clean energy are still large, including the innovation of generation technology, for example, with which renewable energy power generation could overcome the barrier of climatic conditions. Overall, according to the efficiency effect, electricity price will increase the power-generation structure.

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TABLE 4 . Mechanism tests.

Entrance Effect

With respect to the entrance effect, we focus on whether electricity companies will be propelled by the raise of electricity price. The dependent variables are replaced by the ratio of clean energy cumulated capacity in total capacity or in total capacity whose power is over 6000 kW. The independent variable is replaced by wind power on-grid price. Columns 3 to 6 of Table 4 display the results. The coefficients of price are significantly positive in each regression, which indicate the positive relationship between price and the introduction of new plants. This outcome provides evidence for the entrance effect analysed in Theoretical Analysis .

Conclusion and Discussion

Based on microeconomic theories, a price incentive can have an influence on the decision of market participants. This paper assumes that electricity price may affect the power-generation structure and plays its role through two channels, namely the efficiency effect and the entrance effect. The specific direction of influence cannot be acquired solely in qualitative analysis. Although our model cannot predict the direction of influence, the empirical results show that, with the rise of electricity price, the power-generation structure tends to grow, which seems to be inconsistent with the concept of sustainable development. The robustness of this result is also examined. Some other issues are illustrated in the mechanism test, that an increase in price level can significantly improve the average utilization hours of power-generation plant, especially for thermal power-generation ones, which partly reflect the technology improvement in power sectors. The price is proved to be an incentive to clean power plant investors, which is described as the entrance effect.

The carbon peak and carbon neutral goals were put forward for the first time in December 2020 in the annual Central Economic Work Conference. Boosting the enormous development in new energy, accelerating the dynamic adjustment of the energy structure, and promoting the peak of fossil fuel consumption combine to formulate an essential way to obtain these goals. The large amounts of emissions from thermal power generation cannot be ignored. Therefore, it is worthwhile to investigate the causes and consequences of the power-generation structure in China. This paper aims to study the role of electricity price concerning power-generation structure. The results show that an increase of price causes the proportion of thermal power generation to rise significantly. In addition, the electricity price can not only stimulate existing power plants to increase their utilization but also encourage firms to invest in renewable energy plants.

Based on the whole study, there are two recommendations we would like to suggest. First, it is the power-generation structure, not the power-capacity structure, that deserves more attention. Although the ratio of installed capacity for renewable energy has soared these years, the growth of the ratio of electricity from renewable energy is relatively slow. However, power generation mix directly influences the emissions of pollutants and GHG. Thus, the government is supposed to upgrade the power grid system, enhance the productivity and utilization of power machines, and strengthen the supervision on the introduction of idle power plants. Second, innovation plays a significant part in achieving sustainable goals. Technology breakthrough may not only improve the efficiency of plants and reduce the line loss rate, but it also has the potential to contribute to a sharp decrease of carbon emissions.

Data Availability Statement

The raw data supporting the conclusion of this article will be made available by the authors, without undue reservation.

Author Contributions

All authors listed have made a substantial, direct, and intellectual contribution to the work and approved it for publication.

Conflict of Interest

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Publisher’s Note

All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article, or claim that may be made by its manufacturer, is not guaranteed or endorsed by the publisher.

1 Zhao et al. (2016a) has identified and summarized incentive approaches in China for renewable energy following chronological order

2 Ouyang and Lin (2014) suggests that financial subsidy is an essential method in dealing with the high-cost problem

3 Due to the availability of reliable data, the time interval of the average power-generation structure data is from 2006 to 2017, which is the latest data we could access until now

4 The small amount of the data we could get is another important consideration

5 Note that the clean energy technology has been advancing dramatically recently

Ai, H., Xiong, S., Li, K., and Jia, P. (2020). Electricity price and Industrial green Productivity: Does the "Low-Electricity price Trap" Exist? Energy 207, 118239. doi:10.1016/j.energy.2020.118239

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Keywords: electricity price, power-generation structure, fixed effect, efficiency effect, entrance effect

Citation: Wang J and Li H (2021) The Impact of Electricity Price on Power-Generation Structure: Evidence From China. Front. Environ. Sci. 9:733809. doi: 10.3389/fenvs.2021.733809

Received: 30 June 2021; Accepted: 09 August 2021; Published: 20 September 2021.

Reviewed by:

Copyright © 2021 Wang and Li. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

*Correspondence: Hong Li, [email protected]

This article is part of the Research Topic

Green Finance, Renewable and Non-Renewable Energy, and COVID-19

Home — Essay Samples — Science — Electricity — Electric Power Generation In The United States

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Electric Power Generation in The United States

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Fossil fuels, natural gas.

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Essay on MHD Power Generation | Electricity | Energy Management

essay power generation

Here is a compilation of essays on ‘MHD Power Generation’ for class 8, 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘MHD Power Generation’ especially written for school and college students.

Essay on MHD Power Generation

Essay Contents:

  • Essay on the Limitations of MHD Power Generation

Essay # 1. Introduction to MHD Power Generation:

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Magnetohydrodynamic (MHD) is a direct heat-to-electricity conversion technique based on Faraday Law that when an electric conductor moves across a magnetic field, a voltage is induced in it which produces an electric current. Here the conductor is an ionized gas which is passed at high velocity through a powerful magnetic field; a current is generated and can be extracted by placing electrodes in a suitable position in the stream.

It produces d.c. power directly. MHD power generation is the most promising of direct energy conversion techniques where the mechanical link can be avoided. It can overcome some of the limitations of conventional power generation by improving the efficiency from 40% to 55%, thus better utilising the fuel resources and reducing the environmental pollution.

MHD power generation has great potential for power production in excess of 1000MW. It can be used as topper for a coal-fired thermal power plant. This will increase the thermal plant efficiency by affecting direct conversion of heat to electricity. In addition to fuel economy and reduced environmental pollution, the capital cost of the power plant will also be reduced.

Essay # 2. Arrangement of MHD Power Generator :

The arrangement of MHD power generator is shown in Fig. 13.1. The ionized gas working as electrical conductor experiences a braking force due to electro­magnetic interaction. The degree of ionization required in practice is very small of the order of 0.1%. The gas is still composed of neutral particles which carry nearly all the kinetic energy of stream and are unaffected by magnetic force.

The retarding force is a complex function of collisions, cross-sections and magnetic flux density. The applied magnetic field manifests itself through the force that it exerts on the electrons in the gas. This force is then coupled to the neutral particles by the electron-ion Coulomb force and ion-neutron collisions.

In order to achieve a large power output, the gas velocity should be high (10 3 m/s) and applied magnetics flux density must be as large as possible. There should be adequate gas conductivity (more than 10 mhos/m). To achieve equi­librium conditions in the pure gas by thermal ionisation, temperatures of tens of thousands of degrees are required.

By seeding the gas with elements which have low ionisation potential such as alkali metals Cesium and Potassium, It is possible to achieve reasonable conductivity at temperature in the region of 2000°C. This temperature is within the limits of material technology of MHD.

The electrical power is proportional to magnetic flux density (B) and gas velocity (U) and gas conductivity (σ).

MHD Power Generation

If a particle with positive charge q is moving in a duct with plate walls P 1 and P 2 with a velocity v’, the magnetic flux of density B pointing into the paper will apply a magnetic force F on the particle. The force, magnetic field and velocity are vector quantities.

essay power generation

The following factors can adversely affect the thermal efficiency:

i. Dissipation of energy in the internal resistance of ionised gas.

ii. A space charge barrier at the electrode surface.

iii. Heat loss through the electrode and insulator walls.

iv. Losses associated with fluid friction

v. Hall effect losses due to current induction in the direction of flow of gas.

Essay # 5. Electrical Analysis of MHD Power Generation:

When a current I flows across load resistance R L with voltage V across the load, the electrical intensity across the electrode plates.

Electrical Circuit of MHD Generator

Calculate the open circuit voltage and maximum power output for the following MHD generator:

Plate area = 0.25 m 2

Distance between plates = 0.50 m

Magnetic flux density = 2 Wb/m 2

Average gas velocity = 10 3 m/s

Gas conductivity = 10 mhos/m

essay power generation

The current generated in a Faraday generator at the maximum power output is given by:

essay power generation

Essay # 7. Open Cycle MHD Power Generator System:

An Open Cycle MHD Power generation system is shown in Fig. 13.7.

The system consists of the following units:

Open Cycle MHD Generator

1. Combustion Chamber:

The fuel (coal, oil or natural gas) is burnt with preheated oxygen (or air) at 1100 ◦ C. The hot, pressurised working fluid at 2300 ◦ C to 2700 ◦ C is selected with potassium carbonate (or cesium) to ionize the gas.

A convergent-divergent nozzle is used to increase the velocity to 10 3 m/s to get directed mass motion energy.

3. MHD Duct:

It is a divergent channel made of heat resistant material externally water cooled. The magnetic field acts perpendicular to the direction of gas motion. The electrode pair may by connected in different ways as per Fig. 13.5 to reduce losses. The d.c power produced is converted into ac power with the help of an inverter.

4. Preheater:

The gas at 1900°C enters the gas preheater where oxygen or oxygen enriched air or compressed air is heated to a temperature of 1100°C. The preheated gas helps to produce working fluid at 2300°C to 2700°C.

5. Seed Recovery Unit:

The seed material is recovered for successive use for seeding of hot working fluid in the combustion chamber. The original potassium carbonate seed is converted into potassium sulphate due to presence of sulphur in the fuel. The potassium sulphate is converted back to potassium carbonate chemically in the seed recovery unit.

6. Hot Gas:

The hot gases are passed through pollution control device to remove sul­phur and nitrogen oxides before exhausting through a chimney.

Essay # 8. Closed Cycle MHD Power Generation System:

In a closed system, helium or argon is used as working fluid which is heated in a heat exchanger. Higher temperature and better thermal efficiency are possible. However, seeding is required to attain reasonable gas conductivity at temperatures workable with available structural materials. Instead of seeding with cesium or potassium carbonate a liquid metal is mixed with an inert gas to form the working fluid. The liquid metal provides the conductivity.

1. Seeded Inert Gas System :

The main components of a closed cycle seeded inert gas MHD system are shown in Fig. 13.8:

Closed Cycle MHD System

i. Combustor and Heater:

The carrier gas (argon or helium) is heated by the combustion of fuel gas to 1900°C and seeded by cesium injection.

ii. MHD Generator:

The seeded hot working fluid is passed through the MHD generator at high speeds. The dc power from MHD generator is converted to a.c. power by the inverter. The working fluid is slowed down in the diffuser and precooled.

iii. Compressor:

The precooled gas is compressed for heating.

2. Liquid Metal System :

The carrier gas (argon or helium) is pressurised and heated in a heat exchanger within the combustion chamber. The hot gas is incorporated into the liquid metal (hot sodium) to form the working fluid.

i. MHD Generator:

The working fluid consisting of gas bubbles uniformly dispersed in an equal volume of liquid sodium is passed through the MHD generator with high directed velocity.

ii. Breeder Reactor:

The exhaust from MHD duct is passed through a condenser where potas­sium liquid is formed and pumped to breeder reactor. The liquid potassium is heated in vapour form and accelerated through a nozzle.

iii. Separator:

The vapours are separated, condensed and pumped to breeder reactor. The schematic diagram is shown in Fig. 13.9.

Liquid Metal Closed Cycle MHD System

Essay # 9. Hybridisation of MHD Power Generator:

The overall energy utilization can be improved by employing combined-cycle power plant consisting of MHD generator as a topping plant and a gas or steam turbine as a bottoming plant. The overall efficiency of about 60% can be achieved in the combined cycle. The schematic diagram is shown in Fig. 13.10.

MHD Generator-Steam Turbine Combined Cycle Plant

If the gas entering the MHD duct at about 3000°C could be expanded to the ambient temperature of 30°C, the Carnot efficiently would have reached 90%. Unfortunately, the MHD power output is restricted because by the time the gas temperature falls to 2000°C, the electrical conductivity becomes very low with the electrons combining with ions to form neutral atoms, and the generator then ceases to operate satisfactorily.

Therefore, the MHD generator is used as a topping plant and the MHD exhaust at about 2000°C is utilized in raising steam to drive turbine and generate electricity in a conventional steam power plant. If the fraction Z of the fuel energy is directly converted to electricity in the MHD generator, the remainder (1 – Z) is converted with an efficiency Ƞ in the bottom­ing steam plant so that overall efficiency.

Ƞ = Z + Ƞ’ (1 – Z)

If Z = 0.3 and Ƞ’= 0.4, then Ƞ = 0.58 which is a good power plant efficiency. MHD-topped steam plants can operate either in an open cycle or in a closed cycle. A gas turbine plant can also be used as a bottoming unit. Since the combined cycle plant operates over a larger temperature difference, the efficiency will obviously be higher.

Essay # 10. Advantages of MHD Power Generation:

i. The conversion efficiency of MHD generator in combined cycle plants can be 60-65%.

ii. Large amount of power can be generated.

iii. It is very reliable and robust without moving parts.

iv. Pollution-free power can be generated in a closed cycle system.

v. The plant can be operated on full capacity in a very short time.

vi. The plant is very compact.

vii. Capital costs can be lower than conventional power plants.

viii. The operating costs will be lower.

ix. It is a direct conversion device eliminating very large plants which re­duces loss of energy and enhances reliability of operation.

x. The higher energy utilization helps savings in fuel and pollution.

Essay # 11. Indian Experience in the Development of MHD Technology:

Many countries world over are in the development of MHD technology.

The specifications of a Japanese pilot plant (Tokyo) are given below:

essay power generation

The electric generators produce an alternating current when they turn at high speed. The alternating current is produced when the armature of the generator rotates in a magnetic field thus making it keep on changing its polarity by cutting through the field. That change generates an electric charge that keeps on changing the direction thus forming a sinusoidal waveform courtesy of the slip rings on the stator end-point (Wood & Wollenberg, 2012). The AC power can be single or three phase depending on the stator coils which are normally at 120 o to each other for three phase.

Power transmission in the US is in four major interconnections. These are the western, eastern, ERCOT grid and the Quebec interconnections. Power transmission is done at high voltage (115KV and above) to reduce the energy losses that occur over long distances (AFDC, 2016). The power is usually three phase, and the transmission is dominantly overhead although few instances of underground transmission can be done in sensitive locations that do not warrant overhead transmission.

Power for domestic use is stepped down using a transformer that reduces the high voltage to a low voltage value of 120V and 60Hz that is recommended for domestic use for single phase supply. The power enters the homes in insulated cables to a power meter where the distribution to the other sections of the house or home can be done with ease from a consumer unit (Wood & Wollenberg, 2012).

The division of the power within the home is done in three major ways. The lighting gets its supply from a consumer unit which has its circuit breaker rating. The sockets have their supply too with a circuit breaker of a higher rating than the lighting and the supply to heavy consumers like the heating appliances or cookers that have their circuit breaker also from the consumer unit. The rating of this circuit breaker is usually the highest. All the power supply to all sections of the home must pass through a regulation point that protects the home using circuit breakers in the consumer unit that trips in case of high demand beyond the allowable rating (Wood & Wollenberg, 2012).

In conclusion, power generation in the US is facing challenges that require the activity to embrace low-emitting energy-generation technologies that will reduce greenhouse gas emissions that have a great impact on the global climate.

  • AFDC. (2016). Energy production and distribution. Retrieved June 29, 2016, from http://www.afdc.energy.gov/fuels/electricity_production.html
  • Wood, A. J., & Wollenberg, B. F. (2012). Power generation, operation, and control. John Wiley & Sons.

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Guest Essay

The Fantasy of Reviving Nuclear Energy

A photo of two cooling towers at a decommissioned nuclear plant in California, surrounded by vineyards.

By Stephanie Cooke

Ms. Cooke is a former editor of Nuclear Intelligence Weekly and the author of “In Mortal Hands: A Cautionary History of the Nuclear Age.”

World leaders are not unaware of the nuclear industry’s long history of failing to deliver on its promises, or of its weakening vital signs. Yet many continue to act as if a “nuclear renaissance” could be around the corner even though nuclear energy’s share of global electricity generation has fallen by almost half from its high of roughly 17 percent in 1996.

In search of that revival, representatives from more than 30 countries gathered in Brussels in March at a nuclear summit hosted by the International Atomic Energy Agency and the Belgian government. Thirty-four nations, including the United States and China, agreed “to work to fully unlock the potential of nuclear energy,” including extending the lifetime of existing reactors, building new nuclear power plants and deploying advanced reactors.

Yet even as they did so, there was an acknowledgment of the difficulty of their undertaking. “Nuclear technology can play an important role in the clean energy transition,” Ursula von der Leyen, the president of the European Commission, told summit attendees. But she added that “the reality today, in most markets, is a reality of a slow but steady decline in market share” for nuclear power.

The numbers underscore that downturn. Solar and wind power together began outperforming nuclear power globally in 2021, and that trend continues as nuclear staggers along. Solar alone added more than 400 gigawatts of capacity worldwide last year, two-thirds more than the previous year. That’s more than the roughly 375 gigawatts of combined capacity of the world’s 415 nuclear reactors, which remained relatively unchanged last year. At the same time, investment in energy storage technology is rapidly accelerating. In 2023, BloombergNEF reported that investors for the first time put more money into stationary energy storage than they did into nuclear.

Still, the drumbeat for nuclear power has become pronounced. At the United Nations climate conference in Dubai in December, the Biden administration persuaded two dozen countries to pledge to triple their nuclear energy capacity by 2050. Those countries included allies of the United States with troubled nuclear programs, most notably France , Britain , Japan and South Korea , whose nuclear bureaucracies will be propped up by the declaration as well as the domestic nuclear industries they are trying to save.

“We are not making the argument to anybody that this is absolutely going to be a sweeping alternative to every other energy source,” John Kerry, the Biden administration climate envoy at the time, said. “But we know because the science and the reality of facts and evidence tell us that you can’t get to net zero 2050 without some nuclear.”

That view has gained traction with energy planners in Eastern Europe who see nuclear as a means of replacing coal, and several countries — including Canada, Sweden, Britain and France — are pushing to extend the operating lifetimes of existing nuclear plants or build new ones. Some see smaller or more “advanced” reactors as a means of providing electricity in remote areas or as a means of decarbonizing sectors such as heat, industry or transportation.

So far most of this remains in early stages, with only three nuclear reactors under construction in Western Europe, two in Britain and one in France, each more than a decade behind schedule. Of the approximately 54 other reactors under construction worldwide as of March, 23 are in China, seven are in India, and three are in Russia, according to the International Atomic Energy Agency. The total is less than a quarter of the 234 reactors under construction in the peak year of 1979, although 48 of those were later suspended or abandoned.

Even if you agree with Mr. Kerry’s argument, and many energy experts do not, pledging to triple nuclear capacity by 2050 is a little like promising to win the lottery. For the United States, it would mean adding an additional 200 gigawatts of nuclear operating capacity (almost double what the country has ever built) to the 100 gigawatts or so that now exists, generated by more than 90 commercial reactors that have been running an average of 42 years. Globally it would mean tripling the existing capacity built over the past 70 years in less than half that time in addition to replacing reactors that will shut down before 2050.

The Energy Department estimates the total cost of such an effort in the United States at roughly $700 billion. But David Schlissel , a director at the Institute for Energy Economics and Financial Analysis , has calculated that the two new reactors at the Vogtle plant in Georgia — the only new reactors built in the United States in a generation — on average, cost $21.2 million per megawatt in today’s dollars — which translates to $21.2 billion per gigawatt. Using that figure as a yardstick, the cost of building 200 gigawatts of new capacity would be far higher: at least $4 trillion, or $6 trillion if you count the additional cost of replacing existing reactors as they age out.

For much less money and in less time, the world can reduce greenhouse gas emissions through the use of renewables like solar, wind, hydropower and geothermal power, and by transmitting, storing and using electricity more efficiently. A recent analysis by the German Environment Agency examined multiple global climate scenarios in which Paris Climate Agreement targets are met, and it found that renewable energy “is the crucial and primary driver.”

The logic of this approach was attested to at the climate meeting in Dubai, where more than 120 countries signed a more realistic commitment to triple renewable energy capacity by 2030.

There’s a certain inevitability about the U.S. Energy Department’s latest push for more nuclear energy. The agency’s predecessor, the Atomic Energy Commission, brought us Atoms for Peace under Dwight Eisenhower in the 1950s in a bid to develop the “peaceful” side of the atom, hoping it would gain public acceptance of an expanding arsenal of nuclear weapons while supplying electricity “too cheap to meter.”

Fast forward 70 years and you hear a variation on the same theme. Most notably, Ernest Moniz, the energy secretary under President Barack Obama, argues that a vibrant commercial nuclear sector is necessary to sustain U.S. influence in nuclear weapons nonproliferation efforts and global strategic stability. As a policy driver, this argument might explain in part why the government continues to push nuclear power as a climate solution, despite its enormous cost and lengthy delivery time.

China and Russia are conspicuously absent from the list of signatories to the Dubai pledge to triple nuclear power, although China signed the declaration in Brussels. China’s nuclear program is growing faster than that of any other country, and Russia dominates the global export market for reactors with projects in countries new to commercial nuclear energy, such as Turkey, Egypt and Bangladesh, as well as Iran.

Pledges and declarations on a global stage allow world leaders a platform to be seen to be doing something to address climate change even if, as is the case with nuclear, they lack the financing and infrastructure to succeed. But their support most likely means that substantial sums of money — much of it from taxpayers and ratepayers — will be wasted on perpetuating the fantasy that nuclear energy will make a difference in a meaningful time frame to slow global warming.

The U.S. government is already poised to spend billions of dollars building new small modular and “advanced” reactors and keeping aging large ones running. But two such small reactor projects based on conventional technologies have already failed. Which raises the question: Will future projects based on far more complex technologies be more viable? Money for such projects — provided mainly under the Infrastructure Investment and Jobs Act and the Inflation Reduction Act — could be redirected in ways that do more for the climate and do it faster, particularly if planned new nuclear projects fail to materialize.

There is already enough potential generation capacity in the United States seeking access to the grid to come close to achieving President Biden’s 2035 goal of a zero-carbon electricity sector, and 95 percent of it is solar, battery storage and wind. But these projects face a hugely constrained transmission system, regulatory and financial roadblocks and entrenched utility interests, enough to prevent many of them from ever providing electricity, according to a report released last year by the Lawrence Berkeley National Laboratory.

Even so, existing transmission capacity can be doubled by retrofitting transmission lines with advanced conductors, which would offer at least a partial way out of the gridlock for renewables, in addition to storage, localized distribution and improved management of supply and demand.

What’s missing are leaders willing to buck their own powerful nuclear bureaucracies and choose paths that are far cheaper, less dangerous and quicker to deploy. Without them we are doomed to more promises and wasteful spending by nuclear proponents who have repeatedly shown that they can talk but can’t deliver.

Stephanie Cooke is a former editor of Nuclear Intelligence Weekly and the author of “In Mortal Hands: A Cautionary History of the Nuclear Age.”

The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips . And here’s our email: [email protected] .

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Essay: Power generation and transmission

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Power generation and transmission is a complex process, wherever power is to be transferred, the two main components are active and reactive power. In a three phase ac power system active and reactive power flows from the generating station to the load through different transmission lines and network buses. The active and reactive power flow in transmission line is called power flow or load flow. Power flow studies provide a systematic mathematical approach for determination of various bus voltages,three phase angle, active and reactive flows through different lines, generators and loads at steady state condition. Power flow analysis is also used to determinethe steady state operating condition of a power system. For the planning and operation of power distribution system, power flow analysis is used. It is very important to control the power flow along the transmission line. Thus to control and improve the performance of ac power systems, we need the various different types compensators. The continuing rapid development of high-power semiconductor technology now makes it possible to control electrical power systems by means of power electonic devices. These devices constitute an emerging technology called FACTS(flexible alternating current transmission systems). FACTS technology has a lots of benefits,such as greater power flow control ability, increased the loading of existing transmission circuits and has the less cost than other alternative techniques of transmission system is used. The UPFC (unified power flow controller) is one of the most versatile devices. The main function of the UPFC is to control the flow of real and reactive power by injection of a voltage in series with the transmission line. Both the magnitude as well as the phase angle of the voltage can be varied independently. Real and reactive power flow control can allow for power flow in prescribed routes, transmission lines loading is closer to their thermal limits and can be utilized for improving transient and small signal stability of the power system. 1.2 LITERATURE SURVEY The demand of electric power is increasing day by day. This situation has necessitated a review of the traditional power system concepts and practices to achieve greater operating flexibility and better utilization of existing power systems. During the last two decades, various high-power semiconductor device and control technologies have been introduced [1, 2]. These technologies have been instrumental in the broad application of high voltage DC and AC transmissions. The UPFC is the one of most powerful Facts device, introduced by Gyugyi, [3]. For the Power system load flow studies the UPFC current based model is used, which improve the steady state and dynamic performance of the system [4, 5]. In this model the shunt compensation of UPFC is controlled to maintain the system bus voltage and the two components of UPFC series voltage, which are in phase voltage and quadrature voltage, are coordinated to respond to the power variations of the line. In case of static performance the power injection model is used. The sending and receiving ends of the UPFC are decoupled. The active and reactive power loads in the PQ bus and the voltage magnitude at the PV bus are set at the values to be controlled by the UPFC. The active power injected into the PV bus has the same value as the active power extracted in the PQ bus since the UPFC and coupling transformers are assumed to be lossless [6]. The UPFC current based model has implemented into a full Newton-Raphson program by adding the UPFC injected powers and by derivatives the elements of Jacobian matrix with respect to the AC network state variables, i.e. nodal voltage magnitude and angles, at the appropriate locations in the mismatch vector and Jacobian matrix[10]. The UPFC minimize power losses and maintain stability limits, without generation re-scheduling, is shown by numeric examples. UPFC have the capability to regulate the power flow and minimizing the power losses simultaneously [11]. The power injection model of (UPFC) the operational losses also taken into account and the effects of UPFC location on different power system parameters are entirely investigated [9]. A general sequential power flow algorithm based on current based model of FACTS devices has been presented in [7, 8]. The algorithm is compatible with Newton-Raphson and decoupled algorithms. It is important to ascertain the location for placement of UPFC which is suitable for various contingencies. An effective placement strategy for UPFC is proposed [12]. 1.3 OBJECTIVES OF THESIS The main objective of this project is to reduce the active power losses and maintain the voltage stability limits by optimal location of UPFC in power system. In this project we follow the following procedure: ‘ Currents as a variable and performs the load flow studies with unified power flow controller. ‘ To introduce an alternative proposition for steady state modeling of unified power flow controller. ‘ To develop MATLAB program for power injection model. ‘ To develop MATLAB program for current based model. ‘ To compare the results between these methods using Newton-Raphson method. 1.4 ORGANIZATION OF THE THESIS ‘ In Chapter-2, power injection model of UPFC and modification of Jacobian matrix due to injected powers explained. ‘ In Chapter-3, current based model of UPFC and modification of Jacobian matrix due to currents explained. ‘ In Chapter-4, proposed model algorithm and results of proposed and existing models are presented and comparison of results is made. ‘ In Chapter-5, conclusion of the thesis and scope for future work is presented.

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  • Essay on Solar Energy

Solar Power Generation: Exemplar Essay To Follow

Type of paper: Essay

Topic: Solar Energy , Solar , Power , Systems , Generation , Energy , Electricity , Solar Power

Words: 1000

Published: 03/08/2023

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            The generation of electric power through the exploitation of fossil fuels, such as coal, oil and natural gas, is one of the main factors influencing climate change due to the greenhouse gases emissions resulting from the process. In consideration, there is an increasing need to shift towards systems of power generation derived from renewable sources, which have a significantly lower environmental impact; among these are solar, wind, geothermal, hydraulic and ocean power generation. This essay will focus on solar power generation. The energy contained in sunlight can be converted into electricity through the use of Concentrated Solar Power systems ( CSP) or photovoltaic cells (PV). According to Machinda, Chowdhury, Arscott and Kibaara, CSP systems depend on the concentration of sunrays onto Heat Transfer Fluids, which are heated and subsequently turned into super-heated steam that is used to drive a turbine or engine to generate electricity. These systems are categorized in line focusing systems, which use rectangular mirror configurations tilted towards the sun to collect its energy (such as Linear Fresnel Reflectors and Parabolic Trough), point-focusing systems based on dish-shaped mirrors similar to a satellite (Solar Dish systems), and solar tower systems, which according to the NREL, “use a large field of flat, sun-tracking mirrors known as heliostats to focus and concentrate sunlight onto a receiver on the top of a tower”. Photovoltaic cells, on the contrary, directly perform the conversion of sunlight into electricity by taking advantage of the physical properties of semiconductor materials. Solar panels are arrangements of photovoltaic cells composed of semiconductors with p-n junctions that are used to concentrate sun rays, which upon striking the panel’s surface raise the energy level of the electrons freeing them from their atomic shells (Penick and Louk, 3), and these are then forced to move in one direction effectively establishing a flow of electrical current. Figure 1 shows a general diagram that explains how solar cells work. Crystalline silicon (c-Si) is the most widely used type of solar cell, followed by thin-film PV technology and concentrating PV arrays. The result of this process is in the form of direct current (DC), which goes through inverters that convert it into alternating current (AC), which is the standard in generation and distribution systems. Figure 1. - How solar cells work from Penick and Louk; “Photovoltaic Power Generation”; December 1998 Photovoltaic power generation is implemented through solar farms, which are large-scale systems composed of many panels distributed among extensive fields, used to supply power to grids shared by multiple users or, conversely, through individual systems used to power specific homes or businesses, mostly through the installation of solar panels on rooftops. The main concern regarding solar power generation is related to its dependence on incoming radiation and the limitation of electricity output by uncontrollable weather conditions, which can result in stability issues for the connected grid. Moreover, during nighttime, PV panels stop producing electricity altogether. For this reason, battery systems are used to store power which can be delivered when needed, aiding in the mitigation of frequency and voltage issues. Furthermore, panels, troughs, reflectors and mirrors are equipped with solar-tracking technology that allow them to tilt according to the position of the sun and angle of incoming radiation and maximize sunlight energy collection. Solar power generation has environmental impacts related to land use, which raises concerns on land degradation and habitat loss, manufacture of PV components and use of hazardous materials; however, its Composite Environmental Impact Index (CEII) is 52.38, which is considerably lower than the environmental impact of coal-fueled power generation, rated at 885.48, according to Cichocki. Moreover, technologies to recycle materials at the end of their life cycle are under development. The efficiency of solar power generation varies depending on the type of system used and according to IRENA, it ranges from 11-16% for parabolic trough systems, 7-20% for solar tower systems, 22-24% for linear Fresnel systems and 25-28% for dish-stirling systems. Solar-to-electrical conversion efficiency for PV technologies is, according to Penick and Louk, up to 15% for single-crystal silicon cells and approximately 8% for thin-film cells. These percentages may seem low when compared to thermal efficiency ratings of thermal power plants (approximately 40%), but given that they are based on a renewable primary energy source, they represent an environmentally-friendly way to generate electricity and are thus valuable in the fight against climate change. Solar power generation is quickly growing: according to the Fondation Energies Pour Le Monde, it accounted for 0.5% of the electricity produced worldwide in 2012, but rose to an approximate 1% in 2015, mostly through PV technologies. This is likely due to the drastic fall of prices that have made solar more affordable both for residential and non-residential purposes, which has been of approximately 70% from 2008 to 201, even as solar panel technologies have become smarter (Nunez). However, electric billing for conventional energy has not experienced a similar fall, which is the reason why so many buildings and households are now at least partially covered by PV cell systems. In conclusion, these systems provide sustainable green energy that help to slow global warming as their carbon footprints are considerably lower than those of conventional electricity generation methods, provide energy security and independence, and for those who implement individual systems in their homes, save money in the long-term. Therefore, countries should seek to replace fossil-fuel power generation for renewable sources of energy such as solar power.

Cichocki, Andrezej. "Solar energy: better than fossil fuels, worse than anything else." 2009. Environmental Impact Website. 13 April 2016. International Renewable Energy Agency. Concentrating Solar Power. Working paper. Abu Dhabi: IRENA, 2012. Machinda, G, et al. "Concentrating Solar Thermal Power Technologies: A Review." 2011 Annual IEEE India Conference. Ed. IEEE. Hyderabad, 2011. 1-6. Monde, Fondation Energies Pour Le. "Electricity Production in the World: General Forecasts." 2013. National Renewable Energy Laboratory. "Concentrating Solar Power Basics." n.d. NREL Website. Web. 13 April 2016. Nunez, Christina. "Solar Energy Sees Eye-Popping Price Drops." 2 October 2015. National Geographic. Web. 12 April 2016. Penick, Thomas and Bill Louk. "Photovoltaic Power Generation." 1998.

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Essay on the Hydroelectric Power Generation

  • Essay on the Hydroelectric Power Generation

Better known as water power, hydroelectric power is known to be one of the oldest methods of producing electrical energy. This is usually the power that is harnessed from the energy of fast running or falling water to produce both mechanical and electric power (EDF Energy, 2017). To generate this power, a hydroelectric power station that converts the kinetic energy of falling water into electrical energy is used. The power generated is usable for both large scale and small scale purposes. Thus, this essay seeks to give an overview of the generation of hydroelectric power.

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In a hydroelectric station, power generation begins way before it could reach its consumers. Firstly, water is stored in large dams referred to as reservoirs, usually on an elevated ground. Since the water stored in these reservoirs contains potential energy, it is converted into kinetic energy, when it begins to flow from through a vertically elevated penstock, from the dam. As the water gradually flows, the initial potential energy that it possessed is converted into kinetic energy which is used to turn a hydraulic turbine. (Gessford, 1979). The falling water then strikes a series of blades that are attached to a shaft causing the turbine to spin which in turn, converts the kinetic energy of the falling water into mechanical energy. Many at times the scientific ideology behind the turning of a turbine is likened to that of a windmill, only that power on the turbine is provided by falling water and not wind.

Connected to the turbine through shafts and possibly gears, is a generator which spins alongside the spinning turbine. Since the energy produced by the falling water on the turbines is usually mechanical energy, the generator which serves as a transducer converts this mechanical energy from the turbines into electrical energy. The generator's operations are similar to that of any other generator in a power transmission plant. These operations are based on the principles that were discovered by Faraday. Faraday, an ancient scientist, found out that electric energy is caused to flow when a magnet is moved past a conductor. Thus in these large hydroelectric power generation generators, electromagnets are made by circulating direct current through wired loops that are formed around stacks of magnetic steel laminations which form field poles. The field poles around a rotor, which is attached to the shafts of the hydraulic turbine hence making it rotate at a fixed speed.

The spinning of the hydraulic turbine causes the rotor to turn causing the field poles, formed around the electromagnets, to move past electric conductors that are usually mounted in the stator. This process, therefore, causes the flow of electricity, and hence a voltage is developed at the generator output terminals. Normally, the type of voltage that is produced by the generators is usually low. Therefore, for the power transmission lines to carry this generated power over long distances and to reach different consumers, a step-up transformer, which converts the low generator voltage into increased higher transmission voltage is used (Grigsby, 2013).

From the generation plant, power is transmitted to various users through grid high-voltage transmission lines, which are usually supported by tall metal towers. These transmission lines are specially modified to carry high voltage electricity over long distances and into power terminal stations that control the flow of power on grid transmission lines by reducing the grid voltage into sub-transmission voltages (Kaltschmitt et al., 2000). At the transmission voltage, electricity is sold to users who operate their own transmission substations. However, many consumers prefer that the energy from the transmission substations is stepped down using transformers to lower but required voltages that are readily usable.

The amount of hydroelectric power generated at a hydropower plant depends on two crucial factors;

The distance the water falls- The distance covered by the falling water directly affects the amount of power generated. This happens in the sense that, the farther the water falls, the more the power it produces. However, this distance is determined by the size of the reservoir dam that stores the water (Noyes, 1980). The higher the dam elevation, the further the water falls and the more kinetic power it has. Thus, in a nutshell, the power of the falling water is directly proportional to the distance it falls.

The amount of water falling- the volume of water falling through the turbine determines the power generated. In this case, the amount of falling water depends on the river flow, or the water flowing down the river. A plant that has a lot of falling water onto the turbine has the potential to generate more power (Tagare, 2011). Thus, in this regard, the power generated is said to be directly proportional to the river flow, or the water volumes.

Thus, based on these two determining factors, a formula that calculates the power that can potentially be generated by a dam is devised.

Hydropower = (Height of the dam) x (River Flow) x (Efficiency)/ 11.8

In this case:

Hydropower is the electric power in kilowatts

Height of the dam is the distance the water falls (measured in feet)

River Flow represents the water amounts flowing into the river and is measured in cubic feet per second.

Efficiency- this is how well the kinetic and mechanical energy of the falling water and that of the hydraulic turbines is converted into electric power, by the generator.

11.8- This is a constant that converts the units of Watts into seconds into Kilowatts.

EDF Energy. (2017). Hydro-electricity | EDF Energy. Retrieved from https://www.edfenergy.com/future-energy/energy-mix/hydro

Gessford, J. E. (1979). The use of reservoir water for hydroelectric power generation. New York: Arno Press.

Grigsby, L. L. (2013). Electric power generation, transmission, and distribution. Boca Raton, FL: CRC Press.

Kaltschmitt, M., Streicher, W., & Wiese, A. (2000). Hydroelectric Power Generation. Renewable Energy, 349-383. doi:10.1007/3-540-70949-5_8

Noyes, R. (1980). Small and micro hydroelectric power plants: Technology and feasibility. Park Ridge, NJ: Noyes Data Corp.

Tagare, D. M. (2011). Hydroelectric Generation-Pumped Storage, Minor Hydroelectric, and Oceanic-Based Systems. Electric Power Generation, 45-68. doi:10.1002/9780470872659.ch3

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Power Generation from Radio Wave Technology Research Paper

Introduction, history and growth of radio wave technology, power generation using radio waves, works cited.

Radio wave technology is the use of airwaves in transmitting and receiving information. It is the foundation of most of our communication in the present day. Radio waves fall under the group of waves termed electromagnetic radiation, which travel at the speed of light (3×10 8 m/s).

These types of waves (including light, infrared, microwaves and x-rays) are classified based on their wavelengths and frequencies. The frequencies of radio waves lie between 300GHz to 3 kHz with wavelengths of 1mm to 100km. Some of the communication equipments that use radio waves include satellite dishes, radar, radios, television, mobile phones and wireless internet.

The use of radio waves for powering electronic devices had not been exploited due to the nature of waves to weaken and dissipate as they spread due to their interaction with other waves and matter. Recently, a growing interest in alternative sources of energy that could provide efficient power in remote and sensitive locations has led to research into radio wave power generation.

This paper looks at the history of radio waves and how power can be generated from them and how it can be applied in electronic devices.

The history of radio waves as medium for transmitting information started way back in the 1860s when James Clerk Maxwell, a physicist from Scotland, envisaged the existence of the waves.

His prediction was enhanced in 1886 by Heinrich Rudolph Hertz, a German physicist, who went a notch further to show how variation of electric current could be sent into space as radio waves (Bellis 3). He was able to generate and compute the first waves by using an oscillator for transmitting the waves and a metal loop for detecting them (Parker 3).

In 1895 Guglielmo Marconi, from Italy, sent a radio signal over a distance of 100m and received it. He used crafted antenna, transmitter, and condenser and had connections on the ground that could receive the signals. He also sent a wireless signal across the English Channel in 1899(Bellis 5), a distance of 3.5 miles. In addition, Nikola Tesla helped in developing and enhancing wireless radio transmitters.

Ships started using wireless telegraphy for sending distress calls while at sea. In 1899, the U.S Army adopted the wireless system and in 1901, the Navy also adopted the system. Lee Deforest invented the space telegraph in the early 1900s where amplifiers were used to strengthen weak signals (Bellis 12).

Marconi was able to transmit voice in 1914 over a distance of 50 miles (Bellis 12). Over time, many people aided in developing and enhancing radio wave communication and today we have 4G technologies that send information at very high speeds, besides audio and video streaming.

Electromagnetic radiation and photons

Electromagnetic waves can be said to have an atomic structure and can either generate or expend energy (“Electromagnetic waves” par. 7). The electromagnetic radiation, in quantum terms, is said to have photons transporting energy (Joules). A single photon has energy equal to hf.

E = hf h is Planck’s constant =6.626×10 -34 J s and f =frequency of photon

E hf/λ v is the velocity of light= 3×10 8 m/s and λ =wavelength of photon

Collection of radio waves energy

Radio wave energy can be collected and harnessed using various equipments and components. The generation circuit has components such as antenna, capacitors, diodes, transistors, inductors and resistors. The antenna is used for receiving the electromagnetic signal. This signal received is then rectified. The rectifying circuit is made of diodes. Once the signal has been rectified, it is boosted before being stored in capacitors. The power stored is used to drive a load or resistor via a switching circuit.

Block diagram for ground circuit for capturing radio waves

MOS transistors are used for switching or controlling the stored power to the load. The source of the MOSFET (for switching) is connected to the storage capacitor with the drain connected to the load. The link between the capacitor and load is created when the voltage of the stored charge is equivalent to the sum of the threshold voltages of both MOSFETs (Ishida et al. 4).

Potential of radio wave harvesting

Radio wave energy can be efficiently and sufficiently harvested if various factors are considered. These are:

  • Using powerful receivers which detect a wide range of frequencies as well as arresting a high concentration of the wasted waves
  • Ensuring energy is obtained at low power density from sensors located far-off from the source for energy obtained varies inversely with distance (1/d 2 )
  • Ensuring the voltage generated from the source is greater than 0.3V (1 milliwatt) for satisfactory conversion of all incoming wave
  • Using high quality circuits and transistors

Applications of the power generated using radio waves

Power generated by radio waves is quite small ranging from a few microwatts to hundreds of milliwatts. The power generated can be used in devices such as:

  • LED monitor lights.
  • LCD display thermometer.
  • Implants in the biomedical field.
  • Charging the battery for cell phones.
  • Safety hard hat.

Possibility of radio waves technology replacing batteries

Nowadays, there is a high requirement for efficient energy sources. Furthermore, the sources should be mobile and flexible. Batteries are usually bulky, require regular maintenance and have a limited life and as such require constant replacement. With the rapid advancement in technology where electronic gadgets and devices are continually made smaller and efficient, their energy requirements have decreased over time.

Proper harnessing of radio wave energy could provide an alternative source of energy for powering small electrical devices such as sensors. This is through capturing the electricity produced by the radio waves and is depended on how far the transmitter is and the magnitude of the power generated by the transmitter.

The power that can be harnessed from these waves is in the range of microwatts to milliwatts which can be sufficient for powering the devices especially in remote locations. Thus, there is a possibility of radio waves technology replacing batteries.

Conclusion and personal thought about radio wave technology application in future

Energy harnessed from wasted radio waves is small. This energy may not be adequate to power large electronic devices but technology has been changing very rapidly in the recent years. Many companies are developing gadgets that are very small, thus requiring less power. For example, the mobile phone industry has seen a reduction in the size of the phones but with more installed phone features and applications.

Nokia has come up with a harvesting device embedded in a cell phone. This device is able to charge the phone’s battery (Dixon 3). This means that in the future, many miniature gadgets will have been developed which will totally rely on radio frequency energy. Furthermore, radio wave energy will provide a reliable source of energy since the use of cell phones, television, radios and other communication devices is on the rise.

Bellis, Mary . The Invention of Radio . 2012. Web.

Dixon, Bryn. Radio Frequency Energy Harvesting . 2010. Web.

Electromagnetic Waves . 2010. Web.

Ishida, Makoto, Kazuaki Sawada, Hidekuni Takao, and Minoru Sudo. Power Generation Circuit using Electromagnetic Wave . 2011. Web.

Parker, Bev. The History of Radio . Web.

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Utility regulators approve plan for Georgia Power to add new generating capacity

FILE - Plant Bowen, commonly known as Bowen Steam Plant, is a Coal power station, operating, Monday, Dec. 14, 2020, in Euharlee, Ga. The Georgia Public Service Commission approved a deal on Tuesday, April 16, 2024 that allows the company to contract for or build additional generation capacity. (AP Photo/Mike Stewart, File)

FILE - Plant Bowen, commonly known as Bowen Steam Plant, is a Coal power station, operating, Monday, Dec. 14, 2020, in Euharlee, Ga. The Georgia Public Service Commission approved a deal on Tuesday, April 16, 2024 that allows the company to contract for or build additional generation capacity. (AP Photo/Mike Stewart, File)

essay power generation

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ATLANTA (AP) — Georgia Power Co. got the go-ahead Tuesday to build and buy more electrical generation from the Georgia Public Service Commission, despite questions from environmentalists about the demand forecast driving the move and who say it’s unwise to let the company burn more fossil fuels.

Four of the Republican commissioners voted to approve the plan put forward by the largest unit of Atlanta-based Southern Co., while Republican Bubba McDonald abstained.

Georgia Power pledges the deal will put downward pressure on rates for existing customers.

Under an agreement negotiated between the utility and commission staff, the company pledges it will credit $615 million a year in revenue toward future rate calculations in 2029 and later, even if all the new customers the company forecasts do not sign up. Georgia Power says that if nothing else changes, that amount of money could cut rates by 1.6%, or $2.89 a month, for a typical residential customer. However, the company is not guaranteeing rates will fall, because other spending could be approved in the meantime.

No rates would change as a result of the deal until 2026.

FILE - Georgia Power Co.'s Plant Bowen generates electricity, Dec. 14, 2020, in Euharlee, Ga. The utility announced a deal on Wednesday, March 27, 2024, with Georgia Public Service Commission staff that could allow the company to contract for or build additional generation capacity. (AP Photo/Mike Stewart, File)

“Approval of this agreement will preserve and protect the reliability and quality of electric service our customers expect and supports the continued economic development of our state — all while placing downward pressure on rates for all customers,” Georgia Power Chief Financial Officer Aaron Abramowitz said in a statement.

Georgia Power customers have seen their bills rise sharply in recent years because of higher natural gas costs , the cost of construction projects , including two new nuclear reactors at Plant Vogtle near Augusta , and other factors. A typical Georgia Power residential customer now pays about $157 a month, including taxes.

“Our ratepayers cannot continue to see rate hikes,” said Commissioner Fitz Johnson after the vote. “That message needs to go back loud and clear.”

McDonald said he abstained because he feared that if President Joe Biden was reelected, new fossil fuel units could face obstacles. McDonald also questioned the plan during earlier hearings because Georgia Power has not guaranteed there would be no rate increase.

Environmentalists and customer advocates questioned letting Georgia Power buy power and build new fossil fuel plants without going through a competitive process. Using those sources would mean Georgia Power emits more climate-altering carbon dioxide than using solar generation, other renewable sources and conservation.

The request for more generation capacity is unusual because Georgia regulators usually consider those needs on a three-year cycle, with the next integrated resource plan scheduled for next year. But the company says so many new users, including computer data centers, are seeking power that it needs more generation immediately. Company officials said in testimony that 6,200 megawatts of additional demand have signed up in recent years. That’s almost three times the capacity of the two new Vogtle reactors.

The deal lets Georgia Power contract for generation from a natural gas plant in Pace, Florida, and from Mississippi Power Co., a Southern Co. corporate sibling. Georgia Power would also be approved to build three new combustion turbines at Plant Yates near Newnan that could burn natural gas or oil. However, the company agreed it wouldn’t charge for cost overruns for the turbines unless overruns are caused by factors outside the company’s “reasonable control.”

Opponents said the new capacity at Yates shouldn’t have been approved, saying cheaper, cleaner sources could have been secured through a competitive process.

“It was well-established in by multiple witnesses in the record that the decision on those units can wait,” Bryan Jacob of the Southern Alliance for Clean Energy told commissioners last week.

JEFF AMY

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