Lawmakers pave way for $1.2 trillion in new military spending over next 10 years
By Andrew Lautz | Responsible Statecraft | September 2, 2021
Reporters, lobbyists, activists, Biden administration officials and, of course, lawmakers and their staffs spent countless hours and an ocean of ink on the negotiations for and passage of a recent bipartisan infrastructure bill totaling around $1 trillion. Casual observers probably won’t hear as much, though, about two votes — one in the Senate and one in the House — that could pave the way for Congress to spend a whopping $1.2 trillion additional dollars on the military, above current projections, over the next decades. Here’s how.
These pages recently covered the Senate Armed Services Committee’s successful effort to add $25 billion in taxpayer-funded slush to the annual defense budget bill. Democrats and Republicans joined hands to fatten up the defense bill by 3.5 percent, with Sen. Elizabeth Warren (D-MA) casting the lone dissenting vote. That increase was just endorsed by the House Armed Services Committee (HASC) on Wednesday.
Lawmakers approved, again on a widespread and bipartisan basis, an amendment by the committee’s ranking Republican, Mike Rogers of Alabama, to add $23.9 billion to the House version of the defense bill. Rogers proudly noted that his amendment would provide for a five-percent increase over the defense budget topline enacted in the previous fiscal year. And that’s where the $1.2 trillion comes in.
Defense hawks in Congress have made no secret that they would like to see up to 5 percent growth in the defense budget each and every year. Rogers has said it. His Senate counterpart, Jim Inhofe (R-OK), has also said it. What few budget or military watchdogs have done is explain the compounding effects of 5 percent annual boosts to the defense budget.
Boosting the defense budget 5 percent each year over the next 10 fiscal years would leave the U.S. with a whopping $1.2 trillion defense budget by the end of the decade, heading into fiscal year (FY) 2031. Compare that 5 percent boost each year to what the nonpartisan Congressional Budget Office currently projects defense spending will be over the next 10 years (as of their most recent July 2021 estimate), and the delta (the difference between a 5 percent annual boost and current budget projections) over 10 years is astounding.
The difference is small in the upcoming fiscal year, FY 2022 — $778 billion if defense hawks get their 5 percent boost, versus $763 billion projected by the CBO. But the differences compound over time, exceeding a $100-billion delta in four years (FY 2026) and a $200-billion delta in eight years (FY 2030). By the end of the decade, FY 2031, the difference between the defense hawks’ ideal budget and the CBO projection is $253 billion — almost as much as was spent on the March 2020 $1,200 stimulus checks, to cite just one comparison.
Add it up over 10 years, and the defense hawks would have us spend $1,244,600,390,000 — that’s more than $1.2 trillion — more on defense than current projections. Unfortunately, the bipartisan votes in the Senate and House for a 5 percent defense budget increase in FY 2022 made this chilling possibility much more realistic.
It would be one thing if the defense hawks were proposing robust spending cuts — or tax increases, if that’s a particular lawmaker’s fancy -— to offset this additional $1.2 trillion in spending. But they are not. Rogers made no attempt to pay for his proposed $25 billion boost, nor did Senate Republicans who introduced their amendment on the Senate committee. And Democrats share plenty of the blame for eagerly supporting these amendments and allowing them to pass with wide bipartisan margins.
There are a number of ways to look at this $1.2-trillion budget-busting boost, depending on one’s political persuasions and policy preferences. Fiscal hawks will see another $1.2 trillion added to the record-high debt and deficit levels, high even by the COVID era’s historic standards. Progressives will argue that this $1.2 trillion could be spent on more pressing challenges like climate change and pandemic response. Regardless of where advocates and activists come down, this much is clear: a $1.2-trillion hike to the defense budget, without any corresponding offsets, comes at a significant cost to taxpayers.
It would be another thing if Rogers’ $23.9-billion push was devoted to urgent, emergency needs in the military. But in fact, billions of dollars are going toward the procurement of new ships, warplanes, and other weaponry that there is a questionable urgency for. Nearly a quarter of a billion dollars will go to the highly-troubled F-35 program. More than $3.6 billion will be earmarked for just four new warships for the Navy, whose shipyards are already overburdened and underperforming, while another $567 million is directed toward requiring the Navy to accelerate its production of Virginia-class submarines (whose program, by the way, has suffered from cost overruns and delays). More than $6.5 billion will be spread around on military construction projects across 14 states, the District of Columbia, and Poland. Maryland (16 projects earmarked), Florida (12), and New Mexico (11) appear to be winners.
And, like Santa Claus on Christmas Eve, another $3 billion in the Rogers amendment will go toward fulfilling 69 “wish list” requests from the service branches and combatant commands. Fiscal and military watchdogs have sharply criticized this practice, warning that lawmakers will abuse these annual “wish lists” and gum up the defense budget — which is exactly what the House and Senate committees have done.
A skeptic could claim that it’s “just” $25 billion this year, a drop in the bucket compared to the government’s trillions of dollars in COVID spending. But if the defense hawks get what they want, it will add up to $1.2 trillion over the next decade alone. That may not get the flashy headlines of an infrastructure bill, but it’ll have an even bigger impact on taxpayers’ pocketbooks.
Amazon, “Economic Terrorism” and the Destruction of Competition and Livelihoods
By Colin Todhunter | OffGuardian | August 30, 2021
Global corporations are colonising India’s retail space through e-commerce and destroying small-scale physical retail and millions of livelihoods.
Walmart entered into India in 2016 with a US$3.3 billion take-over of the online retail start-up Jet.com. This was followed in 2018 with a US$16 billion take-over of India’s largest online retail platform, Flipkart. Today, Walmart and Amazon control almost two thirds of India’s digital retail sector.
Amazon and Walmart have a record of using predatory pricing, deep discounts and other unfair business practices to attract customers to their online platforms. A couple of years ago, those two companies generated sales of over US$3 billion in just six days during Diwali. India’s small retailers reacted by calling for a boycott of online shopping.
If you want to know the eventual fate of India’s local markets and small retailers, look no further than what US Treasury Secretary Steven Mnuchin said in 2019. He stated that Amazon had “destroyed the retail industry across the United States.”
AMAZON’S CORPORATE PRACTICES
In the US, an investigation by the House Judiciary Committee concluded that Amazon exerts monopoly power over many small- and medium-size businesses. It called for breaking up the company and regulating its online marketplace to ensure that sellers are treated fairly.
Amazon has spied on sellers and appropriated data about their sales, costs and suppliers. It has then used this information to create its own competing versions of their products, often giving its versions superior placement in the search results on its platform.
The Institute for Local Self-Reliance (ILSR) published a revealing document on Amazon in June 2021 that discussed these issues. It also notes that Amazon has been caught using its venture capital fund to invest in start-ups only to steal their ideas and create rival products and services.
Moreover, Amazon’s dominance allows it to function as a gatekeeper: retailers and brands must sell on its site to reach much of the online market and changes to Amazon’s search algorithms or selling terms can cause their sales to evaporate overnight.
Amazon also makes it hard for sellers to reduce their dependence on its platform by making their brand identity almost invisible to shoppers and preventing them from building relationships with their customers. The company strictly limits contact between sellers and customers.
According to the ILSR, Amazon compels sellers to buy its warehousing and shipping services, even though many would get a better deal from other providers, and it blocks independent businesses from offering lower prices on other sites. The company also routinely suspends sellers’ accounts and seizes inventories and cash balances.
The Joint Action Committee against Foreign Retail and E-commerce (JACAFRE) was formed to resist the entry of foreign corporations like Walmart and Amazon into India’s e-commerce market. Its members represent more than 100 national groups, including major trade, workers’ and farmers’ organisations.
JACAFRE issued a statement in 2018 on Walmart’s acquisition of Flipkart, arguing that it undermines India’s economic and digital sovereignty and the livelihoods of millions in India. The committee said the deal would lead to Walmart and Amazon dominating India’s e-retail sector. It would also allow them to own India’s key consumer and other economic data, making them the country’s digital overlords, joining the ranks of Google and Facebook.
In January 2021, JACAFRE published an open letter saying that the three new farm laws, passed by parliament in September 2020, centre on enabling and facilitating the unregulated corporatisation of agriculture value chains. This will effectively make farmers and small traders of agricultural produce become subservient to the interests of a few agrifood and e-commerce giants or will eradicate them completely.
Although there was strong resistance to Walmart entering India with its physical stores, online and offline worlds are now merged: e-commerce companies not only control data about consumption but also control data on production and logistics. Through this control, e-commerce platforms can shape much of the physical economy.
What we are witnessing is the deliberate eradication of markets in favour of monopolistic platforms.
BEZOS NOT WELCOME
Amazon’s move into India encapsulates the unfair fight for space between local and global markets. There is a relative handful of multi-billionaires who own the corporations and platforms. And there are the interests of hundreds of millions of vendors and various small-scale enterprises who are regarded by these rich individuals as mere collateral damage to be displaced in their quest for ever-greater profit.
Thanks to the helping hand of various COVID-related lockdowns, which devastated small businesses, the wealth of the world’s billionaires increased by $3.9tn (trillion) between 18 March and 31 December 2020.
In September 2020, Jeff Bezos, Amazon’s executive chairman, could have paid all 876,000 Amazon employees a $105,000 bonus and still be as wealthy as he was before COVID. Jeff Bezos – his fortune constructed on unprincipled methods that have been well documented in recent years – increased his net wealth by $78.2bn during this period.
Bezos’s plan is clear: the plunder of India and the eradication of millions of small traders and retailers and neighbourhood mom and pop shops.
This is a man with few scruples. After returning from a brief flight to space in July, in a rocket built by his private space company, Bezos said during a news conference:
I also want to thank every Amazon employee and every Amazon customer because you guys paid for all of this.”
In response, US congresswoman Nydia Velazquez wrote on Twitter:
While Jeff Bezos is all over the news for paying to go to space, let’s not forget the reality he has created here on Earth.”
She added the hashtag #WealthTaxNow in reference to Amazon’s tax dodging, revealed in numerous reports, not least the May 2021 study ‘The Amazon Method: How to take advantage of the international state system to avoid paying tax’ by Richard Phillips, Senior Research Fellow, Jenaline Pyle, PhD Candidate, and Ronen Palan, Professor of International Political Economy, all based at the University of London.
Little wonder that when Bezos visited India in January 2020, he was hardly welcomed with open arms.
Bezos praised India on Twitter by posting:
Dynamism. Energy. Democracy. #IndianCentury.”
The ruling party’s top man in the BJP foreign affairs department hit back with:
Please tell this to your employees in Washington DC. Otherwise, your charm offensive is likely to be waste of time and money.”
A fitting response, albeit perplexing given the current administration’s proposed sanctioning of the foreign takeover of the economy, not least by the unscrupulous interests that will benefit from the recent farm legislation.
Bezos landed in India on the back of the country’s antitrust regulator initiating a formal investigation of Amazon and with small store owners demonstrating in the streets. The Confederation of All India Traders (CAIT) announced that members of its affiliate bodies across the country would stage sit-ins and public rallies in 300 cities in protest.
In a letter to PM Modi, prior to the visit of Bezos, the secretary of the CAIT, General Praveen Khandelwal, claimed that Amazon, like Walmart-owned Flipkart, was an “economic terrorist” due to its predatory pricing that “compelled the closure of thousands of small traders.”
In 2020, Delhi Vyapar Mahasangh (DVM) filed a complaint against Amazon and Flipkart alleging that they favoured certain sellers over others on their platforms by offering them discounted fees and preferential listing. The DVM lobbies to promote the interests of small traders. It also raised concerns about Amazon and Flipkart entering into tie-ups with mobile phone manufacturers to sell phones exclusively on their platforms.
It was argued by DVM that this was anti-competitive behaviour as smaller traders could not purchase and sell these devices. Concerns were also raised over the flash sales and deep discounts offered by e-commerce companies, which could not be matched by small traders.
The CAIT estimates that in 2019 upwards of 50,000 mobile phone retailers were forced out of business by large e-commerce firms.
Amazon’s internal documents, as revealed by Reuters, indicated that Amazon had an indirect ownership stake in a handful of sellers who made up most of the sales on its Indian platform. This is an issue because in India Amazon and Flipkart are legally allowed to function only as neutral platforms that facilitate transactions between third-party sellers and buyers for a fee.
UNDER INVESTIGATION
The upshot is that India’s Supreme Court recently ruled that Amazon must face investigation by the Competition Commission of India (CCI) for alleged anti-competitive business practices. The CCI said it would probe the deep discounts, preferential listings and exclusionary tactics that Amazon and Flipkart are alleged to have used to destroy competition.
However, there are powerful forces that have been sitting on their hands as these companies have been running amok.
In August 2021, the CAIT attacked the NITI Aayog (the influential policy commission think tank of the Government of India) for interfering in e-commerce rules proposed by the Consumer Affairs Ministry.
The CAIT said that the think tank clearly seems to be under the pressure and influence of the foreign e-commerce giants.
The president of CAIT, BC Bhartia, stated that it is deeply shocking to see such a callous and indifferent attitude of the NITI Aayog whch have remained a silent spectator for so many years when:
…the foreign e-commerce giants have circumvented every rule of the FDI policy and blatantly violated and destroyed the retail and e-commerce landscape of the country but have suddenly decided to open their mouth at a time when the proposed e-commerce rules will potentially end the malpractices of the e-commerce companies.”
Of course, money talks and buys influence. In addition to tens of billions of US dollars invested in India by Walmart and Amazon, Facebook invested US$5.5 billion last year in Mukesh Ambani’s Jio Platforms (e-commerce retail). Google has also invested US$4.5 billion.
Since the early 1990s, when India opened up to neoliberal economics, the country has become increasingly dependent on inflows of foreign capital. Policies are being governed by the drive to attract and retain foreign investment and maintain ‘market confidence’ by ceding to the demands of international capital which ride roughshod over democratic principles and the needs of hundreds of millions of ordinary people. ‘Foreign direct investment’ has thus become the holy grail of the Modi-led administration and the NITI Aayog.
The CAIT has urged the Consumer Affairs Ministry to implement the draft consumer protection e-commerce rules at the earliest as they are in the best interest of the consumers as well as the traders of the country.
Meanwhile, the CCI probably will complete its investigation within two months.
Colin Todhunter specialises in development, food and agriculture and is a Research Associate of the Centre for Research on Globalization in Montreal.
GM recall of all Chevy Bolts due to battery fire risk likely to cost $1 billion
Chevy Bolt [image credit: GM Authority]
TallBloke’s Talkshop | August 20, 2021
No hope of ever breaking even on that model now, if there was any to start with. Another edition of the recurring lithium-ion safety issue in the world of EVs: battery ’emissions’.
– – –
DETROIT (AP) — General Motors is recalling all Chevrolet Bolt electric vehicles sold worldwide to fix a battery problem that could cause fires.
The recall raises questions about lithium ion batteries, which now are used in nearly all electric vehicles.
President Joe Biden wants to convert 50% of the U.S. vehicle fleet from internal combustion to electricity by 2050 as part of a broader effort to fight climate change.
The recall announced Friday adds about 73,000 Bolts from the 2019 through 2022 model years to a previous recall of 69,000 older Bolts.
GM said that in rare cases the batteries have two manufacturing defects that can cause fires.
The Detroit-based automaker said it will replace the battery modules in all the vehicles.
The move will cost the company about $1 billion.
GM said owners should limit charging to 90% of battery capacity. The Bolts, including a new SUV, should be parked outdoors until the modes are replaced.
Continued here.
If Net Zero crashes and burns, the press will have only themselves to blame
Global Warming Policy Forum – 13/08/21
The passengers on the global warming bandwagon are worried. With the big climate conference in Glasgow at the end of the year getting ever closer, it now looks very much as if the big emitting nations are not going to sign up to a Net Zero agreement, and that the Prime Minister will be left with a humiliating failure on his hands.
It’s not just the conference that is in jeopardy. The government’s whole Net Zero agenda looks increasingly threatened, as Conservative MPs look nervously at the costs, and wonder what it might do to their chances of reelection.
If it goes all pear-shaped, the journalists and commentators who have been promoting the decarbonisation agenda for years have only themselves to blame. It has been clear to anyone who took the time to question the narrative that the aims were impractical, the figures presented were implausible, and that it was only a matter of time before there was a public backlash.
However, questioning things seems to nowadays be only a peripheral part of journalists’ job descriptions, particularly those on the climate and energy beat. Today’s Times’ leader, and James Kirkup’s recent article in the Spectator, both on the subject of net zero, are cases in point.
Both authors have clearly been briefed that the Office of Budget Responsibility (OBR) has estimated the cost of decarbonising the economy at £1.4 trillion. Unfortunately, that is wrong. The OBR has not prepared any estimate of the cost – it simply relays the figure prepared by the Committee on Climate Change (CCC). Similarly, the Treasury, currently engaged on its review of the Net Zero project, is not actually assessing the bill to be paid either; it too accepts the CCC’s figures on trust.
This is a problem, because the CCC – beset as it is with extraordinary conflicts of interest – is the last organisation you’d entrust with coming up with reliable figures. And if you had any doubt, you only need to consider the tens of thousands of pounds it has spent on lawyers in order to keep the calculations underlying its estimate secret to realise that there really is a problem.
Even simple arithmetic shows the CCC estimate is entirely implausible. Twenty million homes needing heat pumps at £12,000 a time adds up to a cost of hundreds of billions of pounds. Most of them will need major insulation works too, at a cost running to tens of thousands of pounds each. That’s half of your £1.4 trillion gone already.
More arithmetic reveals further problems. The Times claims that electric cars will be cheaper than petrol and diesel by 2025. Really? To deliver that, you’d need to deliver price reductions of £2500 per year. But in recent years, the EV cost premium has hardly come down at all, and indeed looks as if it may even start to grow, because of upward pressure on battery prices.
Still, the Times does rather better than James Kirkup, who makes some wild and entirely unsubstantiated claims about the cost of renewables. Onshore wind down 40%? Reviews of the financial accounts of onshore windfarms reveals no such decline, nor indeed any decline at all. Offshore wind down a third? Even if that were true (it isn’t), that would still leave it several times more expensive than traditional power sources, leaving consumers facing sustained electricity price rises, and ultimately being priced off the roads and left unable to afford to heat their homes.
To be fair, there is a wrinkle with offshore windfarms, in that several have signed agreements to supply the grid at very low prices. But as the International Renewable Energy Agency notes, these kinds of deals may merely be part of a long-term pricing strategy, and should not be taken as representative of the underlying costs; in other words, that we will just end up paying more later. That suggestion is borne out by the financial accounts of the UK’s offshore windfarms, which show that costs remain very high, and are at best falling only slightly.
These issues are of vital importance to the UK economy, because if costs are not coming down then the CCC’s estimate of the cost of delivering net zero is understated, possibly by several trillion pounds. It’s a pity then, that journalists opining on net zero have mostly ignored them.
Before I finish, it’s worth raising one final example of a failure to question, this time from the Spectator article. In closing his piece, James Kirkup relays some official estimates of the financial disaster that potentially besets us: the OBR, he notes, has said that national debt could rise to 289 percent (presumably of GDP) if we do nothing about climate change. But here we see again that the pronouncements of officialdom can get you into trouble, or at least if you fail to question them. That’s because the choice is not between doing nothing and trying to change the weather by installing windfarms. There is a third choice: adapt.
Consider this: the biggest cost of global warming is supposed to come about through sea level rise, and here the cost of doing nothing will undoubtedly be very high – one study said we could face a bill of 11% of GDP every year.
But as the seas, rising 2–3 mm per year, started to overtop the sea walls, would we really do nothing, and let our homes be swamped and our children drown? Or would we improve our sea defences? The cost in that case has also been estimated, and is a thousand times smaller than doing nothing. Moreover, such a bill will be readily affordable in the future because of the world’s growing wealth.
The environmentalists and the renewables industry have done well to obscure the painful truth about the decarbonisation agenda from the public. The media have managed to turn a collective blind eye. But times have changed, and the costs can no longer be hidden. If, as seems likely, Net Zero crashes and burns, and all that money is wasted, they will have nobody to blame but themselves.
Let’s divide the European Union
By Dr Jiří Weigl | The Reference Frame | July 22, 2021
Last week’s publication of the European Commission’s plan for a green “great leap” in the holy struggle to save the climate has definitively confirmed that the gulf of opinion, ideas, and interests between the EU’s West and its post-communist East has reached an insurmountable dimension.
The EU West, which controls Brussels and all European structures, has completely succumbed to the phantasmagorical progressivist ideology and is not willing to discuss it at all, but on the contrary wants to impose it by force on everyone, regardless of their views. We are in danger of something strongly reminiscent of the [fatal 1620 Battle of] White Mountain and the subsequent 1627-1628 Verneuerte Landesordnung [Restored Land Order, a new constitutional document] which was octroied [by Ferdinand II i.e. circumventing the legislative assembly of the estates], i.e. intolerant foreign domination, ideological monopoly enforced from the position of strength, persecution of those who disagree, de-nationalisation, and disenfranchisement.
This is not an exaggeration. Progressivist anti-humanist pseudo-salvation of the planet cannot do without such actions and suppression of dissent by force.
Hypothetically, the following possible responses are offered:
Submission and relying on somehow surviving again. That may no longer work in today’s world.
Fight within the EU. An unrealistic scenario, because there is no chance of convincing Brussels and the West of the need to change the current policy.
To respect the balance of power and agree with the other dissatisfied parties to divide the whole, whose direction is not to our liking, while preserving the maximum of the positive from the common past.
To come forward individually, which in the current constellation is not a realistic project for which we have the strength.
We have to respect that our Western European partners, disgusted by their current excess of wealth, see a meaningful future only in poverty, sacrifice, and renunciation for the sake of the planet. Let us respect that they want to renounce consumerism, flying, and personal transport, meat-eating, child-bearing, and other pleasures of life. Let us accept that polyamory and marriage for all will take the place of family for them. Let us give our Western friends the pleasures of doing good deeds in opening their borders and caring for all who head to them from the world for an easier life. Let us allow them to live in a multicultural, Islamized society with free choice of gender and total equality for every conceivable minority, protected by the surveillance of inquisitorial political correctness. Let us allow them to have their own experience of the restriction of civil rights and liberties and the only ideology allowed.
However, let us firmly demand that they respect that we – Czechs, Hungarians, Poles, Slovaks, and other Central and Eastern Europeans – do not want to live in such a society, that we did not enter the EU with such goals and they were not outlined to us at the time. We have our own experiences of totalitarianism and social utopias and we do not want to repeat them. We want to live in our own way and not under someone else’s dictates.
Let us try to avoid the imminent conflict and destruction of European cooperation rationally – let us divide today’s EU with respect for one another and preserve the maximum of the good that unites us. Only in this way will we be able to overcome today’s tensions that threaten to destroy the entire current shaky European construct. We Czechs and Slovaks may have something important to say about this. By taking a similar step, we avoided the serious threats after the fall of communism.
As we know, it was not beneficial for anyone to stay on the Titanic after the collision with the iceberg. The European Commission itself put such an iceberg in the EU’s path. Let us try to get off a ship that we cannot stop at any cost if we care about the future of our children. The planet will survive.
A Little Arithmetic: The Costs Of A Solar-Powered Grid Without Fossil Fuel Back-up
By Francis Menton – Manhattan Contrarian – July 29, 2021
Yesterday’s post made the point that states or countries seeking to march toward 100% “renewable” electricity don’t seem to be able to get past about the 50% mark, no matter how many wind turbines and solar panels they build. The reason is that, in practical operation, due to what is called “intermittency,” no output is available from the solar and wind sources at many times of high demand; therefore, during those times, other sources must supply the juice. This practical problem is presented most starkly in California, where the “renewable” strategy is based almost entirely on solar panels, with only a very small wind component. Daily graphs published by the California Independent System Operator (CAISO) show a clear and obvious pattern, where the solar generation drops right to zero every evening just as the peak demand period kicks in from about 6 to 9 PM.
Commenter Sean thinks he has the answer: “Given the predictable daily power generation cycle of solar in sunny places like California and the predictable daily demand which peaks in the evening perhaps solar generators should be required to have electricity storage equivalent to the daily generation of their PV system.”
I thought it might be instructive to play out Sean’s idea to see just how much solar generation capacity and storage it would take to make a system out of just those two elements that would be sufficient to fulfill California’s current electricity requirements. Note: this is an exercise in arithmetic. It is not complicated arithmetic. There is nothing here that goes beyond what you learned in elementary school. On the other hand, few seem to be willing to undertake the effort to do these calculations, or to recognize the consequences.
We start with the current usage that must be supplied. Currently, the usage ranges between a low of around 30 GW and a high of around 40 GW over the course of a day. For purposes of this exercise, let’s assume an average usage of 35 GW. Multiply by 24, and we find as a rough estimate that the system must supply 840 GWH of electricity per day.
How much capacity of solar panels will we need to provide the 840 GWH? We’ll start with the very sunniest day of the year, June 21. California currently has about 14 GW of solar capacity. Go to those CAISO charts, and we find that on June 21, 2021, which apparently was a very sunny day, those 14 GW of solar panels produced at the rate of about 12 GW maximum from about 8 AM to 6 PM, about half that rate from 7-8 AM and 6-7 PM, and basically nothing the rest of the time. Optimistically, they produced about 140 GWH for the day (10 hrs x 12 GW plus 2 hrs x 6 GW plus a little more for the dawn and dusk hours). That means that to produce your 840 GWH of electricity on a sunny June 21, you will need 6 times the capacity of solar panels that you currently have, or 84 GW. When 7 PM comes, you’ll need enough energy in storage to get you through to the next morning at around 8 AM, when generation will again exceed usage. This is about 13-14 hrs at an average of 35 GW, or around 475 GWH of storage.
That’s June 21, your best day of the year. Now let’s look at a bad day. For the past year, a good example would be December 24, 2020, which besides being one of the shortest days of the year, must also have been rather cloudy. Production from the existing 14 GW of solar capacity averaged only about 3 GW, and only from 9 AM to 3 PM. That’s 18 GWH in that window (3 GW x 6 hrs). Then there was another about 1 GWH produced from 8 to 9 AM, and another 1 GWH from 3 to 4 PM. About 20 GWH for the whole day. You need 840 GWH. If 14 GW of solar panels only produced 20 GWH for the day, you would have needed 588 GW of panels to produce your 840 GWH. (14/20 x 840) That 588 GW of solar panels is some 42 times your existing 14 GW of solar panels. And when those 588 GW of capacity stop producing anything at all around 4 PM, you are also going to need at least 16 hours worth of average usage in storage to get yourself to 8 AM the next morning. That would be around 560 GWH of storage.
So you can easily see that Sean’s idea of providing storage “equivalent to the daily generation of the PV system” doesn’t really get to the heart of the problem. Your main problem is that you will need capacity of close to 15 times peak usage (nearly 600 GW capacity to supply peak usage of around 40 GW) in order to deal with your lowest-production days of the year.
Cost? If you assume (charitably) that the “levelized cost” of energy from the solar panels is the same as the “levelized cost” of energy from a natural gas plant, then this system with 15 times the capacity is going to cost 15 times as much. Plus the cost of storage. In this scenario, that is relatively modest. At current prices of around $200/KWH the 560 GWH of storage will run around $112 billion, or around half of the annual budget of the state government of California.
But you may say, no one would build the system this way, with gigantic over-capacity in place just to cover the handful of days in the year with the very lowest solar output. Instead, why not build much less solar capacity, and save up power from the summer to cover the winter. Since the average output of the solar facilities in California is about 20% of capacity averaged over the year, then you ought to be able to generate enough power for the year with capacity of about 5 times peak usage, rather than the 15 times in the scenario above. You just will need to save up power all the way from the summer to the winter. Oh, and you will need a huge multiple more storage than for the one-day-at-a-time scenario. If 180 days per year have less production than usage, and the average shortfall of production on each of those days is 300 GWH, then you will need 54,000 GWH worth of batteries (180 x 300). At $200 per GWH, that will run you around $10+ trillion. This would be about triple the annual GDP of the state of California.
But don’t worry, batteries to store power for six months and more and release it without loss on the exchange don’t exist. Maybe someone will invent them in time for California to meet its 2030 renewable electricity targets.
Any reader can feel free to check my math.
I just can’t believe that anybody talks about this as something remotely connected to reality.
Russia rejects Dutch court ruling to hand $5 BILLION of taxpayers’ cash to ex-oligarchs over collapse of Yukos
RT | July 29, 2021
Officials in Moscow have vowed to vigorously appeal a judicial ruling in an international arbitration court that would bind Russia to hand over billions of dollars to the former shareholders of the collapsed Yukos energy giant.
The office of the country’s Prosecutor General said on Thursday that it does not acknowledge the validity of the decision, by the International Arbitration Court in The Hague. Authorities said that Russia would “appeal the decision without fail,” questioning both the basis of the judges’ jurisdiction and the claims themselves.
Earlier that day, representatives of the shareholders who lost cash when the former oil and gas conglomerate collapsed claimed victory in legal proceedings that handed them a total of $5 billion in compensation. A separate claim, for a total of $57 billion, is currently being heard by the Supreme Court of the Netherlands.
The ex-shareholders say that the Russian government “expropriated” the assets of Yukos when the firm was bankrupted by a multi-billion dollar tax bill. The private company had been formed after a controversial auction of state assets following the fall of the Soviet Union, and quickly became one of the world’s most valuable companies despite investors picking it up for a fraction of its worth.
The founder of the energy empire, Mikhail Khodorkovsky, later served time in prison on fraud charges, which he claims were a response to his political activity. However, the London-based businessman asserts he has no direct interests in the lawsuit, and the case has been brought by other financiers including influential businessman Leonid Nevzlin.
Russia has insisted that the judgements are “politically motivated,” and in December the country’s Justice Minister, Konstantin Chuychenko, told journalists that the case was part of a “legal war that has been declared on Russia.” He added that “Russia must adequately defend itself and, sometimes, even attack back.”
Moscow denies the charges and says that foreign courts have not considered that national laws around fraud and other wrongdoing might have been broken. However, in December, the Constitutional Court, one of Russia’s highest judicial authorities, ruled that Russia could refuse to pay any settlement imposed by Dutch judges. The basis for the arbitration is the terms of the Energy Charter Treaty, which Moscow signed but never ratified.
In their adjudication, the judges found that while the country’s government of the day began the process of signing up to the pact in 1994, they did not have the authority to make national laws inferior to international agreements, or to “challenge the competence” of Russian courts. Therefore, the jurists conclude, adhering to the Dutch court’s demands would be “unconstitutional.”
There have, however, been a number of attempts to confiscate Russian state assets in case the country refuses to honor any eventual settlement. To date, though, these have ultimately been rapidly overturned by courts. The case is expected to be settled by the Netherlands’ highest court later this year.













