Course:ECON371/UBCO2011WT1/GROUP 7 - e

Article

A Better Nano Battery - http://www.enn.com/energy/article/43620

Summary

The article describes how Stanford University researchers are in the early stages of developing a battery that uses nano-technology and can last thousands of times longer than the ones traditionally used. Currently, batteries such as Lithium Ion and Nickel-metal hydride can handle approximately 400-500 recharge cycles before the amount of energy stored begins to deteriorate and the batteries become useless. The tests conducted on the new nano-tech batteries indicate that they can survive 40,000 recharge cycles and still maintain 80% of its power. The nano-technology integrated into the batteries features a "new electrode was made using crystalline nanoparticles of a copper compound called copper hexacyanoferrate". This allows the ions flowing inside the battery to move more freely and efficiently, which lengthens the batteries life and means it can also be charged much more quickly. The environmental benefits from the article are to be gained by using these batteries in power grids, thus making the harnessing of solar and/or wind energy much more feasible. Some drawbacks are its size (which limits it to use on power grids), and that the researchers have only developed the 'cathode' of the battery, and have yet to find suitable materials to use for the 'anode'. However, this technology holds massive potential for the development of energy storage systems.

Analysis

The major difficulties associated with solar power are the expensive initial set-up costs, and the fact that today's batteries do not efficiently store energy. Therefore, it is difficult for local governments or businesses to consider adopting the technology. With this news however, it could soon be much easier to store energy, making that initial set-up costs worth it when considering the long-term benefits.

Currently, the popular energy sources in Canada are hydroelectric, natural gas, nuclear, and some coal. These resources are non-renewable and extremely harmful to the environment (like coal and hydroelectric dams), or have huge risks associated with them (such as a nuclear meltdown). The transition to solar energy is generally agreed to be inevitable, but the cost of the transition and the lack of efficient technology has made it a very slow process.

What is required for solar energy is that the energy storage systems are able to survive thousands of recharge cycles, high round-trip energy efficiency, and operate at low cost. This new battery developed with nano-technology can accomplish each of these.

The transition to solar energy has potential to decrease abatement costs from government and businesses drastically. The initial cost-benefit analysis before this technology was introduced would clearly indicate that it is not economically feasible to adopt solar power. Now, however, the cost of solar power is decreased and the benefits are the same: clean energy to eliminate emissions and offer improved environmental quality for all.

The positive externality for society is immense, as it also has the ability to offer citizens lower costs on their energy bills.

Clearly, this is in the governments best interest. It would be wise for them to offer subsidies and offer further research grants to speed up the development of these technologies. The switch to this energy source does, however, have the cost of eliminating many jobs from the other energy sectors. The government could then apply an appropriate discount rate to weigh the gains of solar energy and the jobs it creates in the LONG RUN, versus the SHORT RUN costs of having thousands of unemployed workers. The Marginal Cost of money spent on installation and jobs lost versus the Marginal Benefit of environmental benefits and cheap renewable energy is how the government should approach this. To appropriately measure the intersection point and then base the subsidies, policies, and job programs off that point to ensure that the transition is smooth and as economically sensible as possible.

It is a large investment, but one with massive benefits for almost everyone involved in the long run. The creation of solar energy job programs would help faciliate the transition of workers to the solar energy sector.

Even without this technology, solar energy was forecasted for massive growth by the year 2020. With the announcement of this development, it can be safely assumed that this growth will be even larger. The government must act on the issue of emissions and non-renewable energy, and this is a perfect opportunity to give a massive boost to this promising technology.

Prof's Comments

Where is your analysis?

2/10

Your analysis is late, relative to the due date. You make a few good points, but seem to be scrambling for things that are not clearly related - jobs and discount rate.

Revised mark: 5/10