A random history of energy economics (3) – The life cycle of fuels

Fuels like any other product have life cycles.  The stages of the classic life cycle are growth, maturity and decline.  For some fuels like wood, the length of the cycle is measured in millennia, that of coal looks like it might be centuries and carbide probably decades.

My understanding of acetylene lamps is that they were developed for cars and motorbikes at the very end of the 19th century.  Whilst electric incandescent lamps could be powered by a lead-acid accumulator, they were not bright enough to allow safe driving at speed.  The attraction of acetylene is that it burns at a high temperature and produces a bright light.  The gas was generated by the action of water on calcium carbide, the lamps were so constructed that a reservoir of water dripped on calcium carbide which was then burnt in a lamp with a reflector.  The brightness of the lamp was controlled by adjusting the water flow, as the gas was generated, the carbide turned to slaked lime.  “Carbide” was sold in garages along with petrol and oil during the 1920’s, but as automotive electrics improved and effective headlamps which could be controlled by a switch became a standard fitting, carbide lamps were largely displaced by the 1930s.

Kerosene (a.k.a. paraffin) as a domestic fuel had a somewhat longer life cycle, it was used for lighting and cooking in late 19th century.  In the era of solid fuel ranges. it facilitated cooking without first having to light a coal fire, although many found the smell unattractive.  Paraffin heaters were widely used well into 1970s and may people remember the Esso’s adaption of “the smoke gets in your eyes” for their TV adverts.  Paraffin heaters were generally displaced by low cost gas central heating in the 1970s.

The same pattern of growth, maturity and decline is apparent in the UK coal consumption.  A spokesman for OPEC once commented that the UK did not run out of coal, they just stopped using it.  In the latter part of the 19th century consumption grew as industry, the railways, gas production and other applications expanded.  It remained constant for approximately half a century until the 1970’s.  During this time the economy was growing, but technology was evolving which allowed coal to be used more efficiently.  In 1890, electrical power generation had a thermal efficiency well below 5%, by 1970, this was approaching 40%.  The boilers used in the early power stations operated around 150 psi, by 1945 some were operating at 675 psi, the rising temperatures and pressures resultined in higher operating efficiencies.

In the 1960, natural gas (mostly methane) from the North Started to displace coal as a domestic and industrial fuel.

The displacement of coal by natural gas is apparent in the graph below.  Starting around 1830, many towns acquired as gas works either privately or municipally owned, in the early years the principal use was for lighting, but cooking, heating and industrial use increased.  Between 1900 and 1930, electricity, also generated from coal, displaced gas for lighting.    The availability of North Sea gas bought about the extinction of the coal gas works in less than a decade.

Gas turbine power stations, steadily displace coal fired steam technology, a process which accelerated in the 21st century as concerns over the environmental effects of coal grew.

Relevance for Today

The energy mix is constantly changing, the driving force is technology, over two centuries it has included coal, wind, nuclear (after 50 years is this an old technology) and many evolutions within each one.  There is a lot of evolving technology, offshore wind and electrical storage maybe the key elements.  Several cities are talking about petrol or diesel vehicles and only allowing electrical ones, so more change can be expected.

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A Random history of energy economics (2) – The Horse and the Lorry

By 1900 railways were the most important element in Britain’s transport infrastructure, but they only provided town-to-town communication.  The distribution of goods within a town was done with men with barrows and horses with carts.  In the rural areas “carriers” moved goods and people around with horse drawn wagons.  Horses were widely used well into the 1930s by which time motor transport was firmly established.

I came across some figures comparing the cost of coal distribution from depot to customer by 30 cwt truck and a horse and cart in 1931.  The figures seem to relate to an adequately funded and well run coal business.  Two points about the graphs, first they are for 1931 and are not comparable to costs in 2017 and that the original data is in pounds, shillings and pence which was converted decimal pounds for the benefit of Excel.  I have doctored the data a little for the sake of comparability.  In 1931, the price of domestic coal was between £1.50 and £4.50 per ton depending on the grade, local terrain and market conditions.  Anthracite was the premium product whist Bituminous coal was cheaper, also coke from gas works was widely used.

Both the horse and truck were depreciated over four years and  funded by money at 5%, the horse cost £90 and the truck £250.  The cost structures for both modes of transport is broadly similar, the exceptions are higher capital related costs of the truck, the legal requirements for a license and insurance and maintenance.  Food for the horse and fuel for the truck are similar as are the wages of the driver.

The big difference is the level of productivity, the horse shifts 38.5 tons/week, whilst the truck can do 49.5, but the unit costs are similar at around £0.20/ton.  I suspect that there was a lot of variation within the industry.  If only one man was employed to work with the truck, he would have to work harder than the bloke with the horse and cart, the references I have seen to coal sacks at this time suggest there were 1.25 cwt ( very roughly 62kg or very heavy, I struggle with 25kg bags of sand).  This might have been OK for a youngish man shooting coal into a cellar with street access, much less for an older one shifting the bag from the street to coal store in the scullery at the back of the house.

Some random reading suggests that the domestic coal market was split into three sectors.  At the top end would be customers that bought coal in large quantities, say greater than half a ton, possibly belonging to a “coal club”  which spread the cost more or less evenly over the year, trucks would give an advantage to merchants serving this group.  Those serving customers purchasing less than half a ton and paying the current market price might have a cost advantage from the potentially lower costs of the horse and cart.  At the bottom end of the market would be those purchasing small quantities of coal, possibly as little as 7 pounds would pay high prices to men with barrows.

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A Random History of Energy Economics (1) – Gas Engines in the Home

Over the past year I’ve been acquiring a few copies of the “The Model Engineer and Amateur Electrician” at car boot sales.  I now have about 15 examples dating from 1899 to 1919.  Models make up a large part of the content, but there is also an informed debate on technology as it was evolving.  At the bottom of one page is a note that a Frenchman has observed that a platinum wire is heated with an electric current and then placed in a jar of methane continued glow.  I’m guessing that this curiosity was an early version of the catalytic converter found on most modern cars.  There are notes on telephones and wireless telegraphy and a discussion of the ideal way of storing energy to power motor vehicles, electricity is was thought to have potential and compressed air to be a bad idea.  Electric shock treatment must have been fashionable as some advertisers claimed it was better to be shocked by their apparatus than that of a rival company.  With hindsight X-Rays were not something the citizen scientist should be encouraged to mess with.  The classified ads can be intriguing, there is a suggestion that a vicar had a model gunboat to sell and why would someone expect to exchange an accordion for a lathe?

In the diversity of items advertised, three occur frequently, these are gas engines, dynamos and accumulators.

In 1905, electricity was still a luxury product costing may be 4d – 6d per kwh (roughly 50p in today’s money) and many urban areas did not have a supplier and remote households had to generate their own electricity if they wanted it.  Gas, however was a mature technology, many gas companies had been established between 1820 and 1850 and most urban areas had a gas works.   In some coastal towns, the coal was supplied by brigs from Newcastle running themselves aground on the beach  and being re-floated after their cargo had been hauled away by horse and cart. The cost of gas might be something like 2s 6d and 3s per 1,000 cubic feet, depending on the nature of the gas this would be roughly 10p/kwh today.

At the turn of the century gas was increasingly being used for heating and cooking, but the principal application was lighting. Whilst gas lighting was better than candles, it could make the air in a room foul, the products of combustion being carbon dioxide, carbon monoxide and water vaoiur plus anything else the gas company could not get rid of.  Gas mantles required cleaning  and lighting, whilst electric lamps were clean and available at the flick of a switch.  Doctors wrote letters extolling the benefit to health of electric lighting.  It’s not easy to make a like for like comparison with the cost of gas and electric lighting but it seems that electricity was perceived as being 5 – 10 times more expensive.

Fractional horsepower gas engine/dynamo sets provided a source of electricity where a public supply was not available and possibly a means of getting a supply at a lower cost.  At the time of writing, I’m still attempting to identify a property which had such an installation.  At a guess, a common configuration would be to have the machinery in a shed where it was used to charge accumulators which were in turn connected to the lighting circuits in the main house.  Voltages seem to have been in the range 4 – 12 volts and accumulators could be relative large, say more than 50 AH.

After 1900, the public electricity supply expanded rapidly, but in most places this was AC, whilst the use of DC in the home decreased, cars and motorbikes created a new demand and low voltage dynamos were used to charge automotive batteries.  Early radio sets also needed a DC supply.

The magazine has several references to water engines, for owners of landscapes which were suitable for the construction of small dams and there a few mentions of “hot air” engines, I take this to mean “Stirling” engines, but so far no description of the workings of these devices.

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Learning to garden (20) – The aging dog again

The garden has always been a work in progress, mainly because I don’t know what to do with it or what I want to do with it.  However, a small vegetable plot was evolving and a few meals produced.  then in August 2016, my dog, never an ideal companion in the garden, decided to dig it up.  At the age of 63, I had a tantrum that would have impressed a three year old.  It was late in the year and there was much that could be done and the garden became a mess and this blog ceased.

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Marigolds and Dahlias

 

I’ve never seen the point of raised beds, they just reduce the growing area by at least 50% and in a small garden, that does not leave much room for plants.  However, they do offer the possibility of creating dog proof enclosures.  the garden is on the eastern side of an sub-urban valley and there is a 5 metre drop from the top of the street wall to the top terrace of the garden.  The street side of this wall is a viewing terrace for the parish and my garden.  I came up with the idea of making the top terrace of the garden attractive to walk around and look into from above.  Some rather rough carpentry produced three shaped beds and space for a metre diameter circular greenhouse.  This greenhouse is in my imagination and a cheap plant tent from the local garden centre in reality.

 

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Work in Progress

 

Having come up with a layout, I was at a loss as to what to plant and it was too late to sow seeds.  What I do enjoy about gardening is growing plants from seed.  There is something too look at each day and a real sense of satisfaction when the flowers come into bloom or you eat the plant for lunch.

Despite plans to study ancient works on gardening, join the RHS and consult web sites, I purchased a couple of packets of seeds from the local DIY store for £1.99 each, one was for French Marigolds and the other for Dahlias.  I planted enough seeds to produce plants to stock one bed.  The result has exceeded expectations,  seed costing £1 has produced a pleasing bed.  It may be in the style of Acacia Avenue, but I now have a sense of direction.

As for the dog, he is happy to poo in the spaces between the beds and so far has not done any serious damage.  My relationship with that dog is complex, we do no stare admiringly at each other and our tastes are divergent, but there is a sense that we appreciate each other’s existence.  He would be out of place in Acacia Avenue.

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The price of house coal

The starting point for this post was some old family accounts which extended, with gaps from the 1920s to the 1940s.  This was augmented by some figures found in the online version of Hansard.  Some local history material provided a human dimension to the numbers.

The graphs should be treated with caution as they are random in both time and location.  House coal can be priced in several ways, my family always discussed it in terms of cost per hundredweight (112 pounds or very roughly 50 kg).  In 1835 it became compulsory to sell coal by weight rather than volume, before that there are references to “chaldrons”, this was a volumetric measure which might account for 0.5 – to 1.5 tons.

The economics of coal consumption are complex, at £10/cwt, the energy cost is around 2p/kwh which is lower than for gas or electricity.  However, the “benefit” derived from a kg of coal depends on the efficiency of the device in which it is burnt.  When used in a cooking range, a lot of energy is used just warming up a large lump of iron before the thing is warm enough to boil a kettle for tea.  Early ranges were not insulated, which made them inefficient cooking devices, but a desirable source of warmth in the kitchen, modern solid fuel range cookers are well insulated which minimizes heat loss.  In England, houses were heated with open fires which have a very low efficiency (10 – 20%?) with most of the heat going up the chimney.  From limited research, it seems that the French prefer stoves which use coal more efficiently.

During the 20th century, the overall trend in the “real” price of coal was upwards.  At the end of the 1960s coal began to compete with “North Sea Gas” in the domestic fuel market.  Gas was both cheaper and more convenient than coal and coal’s share of the market started to decline.  By the end of the century, coal had become a “niche” product and costs rose as the economies of scale that had been possible faded away.

The retail price of coal has always been subject to wide variations and fluctuations.  In 1795 it was feared that France would invade England and for a time the price of coal was around 55 shillings per chaldron, this would be more than £50/cwt in today’s money.  Households purchase coal for the heat it produces when burnt, premium grade Welsh Steam Coal might have a calorific value of more than 30 MJ/kg whilst that of lower grade fuel might be half that. Some of the variation in the price shown on the graphs is due to variation in the grade of coal.

Apart from events in the wider economy, the price of coal was determined by who you were and where you were.  A well-off, well managed household would buy several tons for delivery in large loads during the summer when they would benefit from lower prices.  At the other end of the scale, those on low incomes might have had to buy coal by the stone (14 lb) or lesser quantity and paid a high unit price (there is an analogy here with today’s pre-payment meters).   Some coal merchants operated “coal clubs” which allowed fuel costs  to be evenly spread over the year.

Transport was a significant part of the cost of distributing coal from the mines to the consumer, by the late 19th century coal merchants were often clustered around railway goods yards.  The coal merchant was responsible for unloading the trucks, if this was not done within an agreed period, say, three days, the buyer was charged demurrage until the wagon was empty.  In the early part of the century it was not unknown for captains of collier brigs from the Tyne to run their vessels on to the beaches of seaside towns if they thought they could get a better price for their cargo than they would get at a port a few miles down the coast.  If the cargo was discharged at a port, then the buyer would have the cost of transport to the point of use.  There was always a risk that they could be stranded for several days until favourable weather and tide allowed them to re-float.

A wide variety of enterprises were active in the local coal markets, some companies operated across regions, some were local businesses, maybe just a father and son working together with a horse and cart and below them were the barrow boys.  Our family favoured the Co-Op, probably to get the “divi”.

A coalman’s job was hard and dirty, often it was delivered to the consumer in sacks containing one and a quarter hundredweight (roughly 60 kg).  Large houses would have purpose built coal stores and some town houses had coal cellars which extended under the pavement which could be filled through a hole normally covered by an iron cover.  The difficult ones were small terraces where the coal had to be carried through the house to the scullery, a task which had to completed without upsetting the housewife.

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The early days of electricity in Hove (3)

As with previous posts in this series, this one is work in progress and subject to corrections and revisions.

As I mess with this, I realise I am working backwards.  The story starts with an Act of Parliament of 1890 whose objective was to provide electric lighting in Hove, this was to implemented by the Hove Commissioners (what we now call the council), who formed an “electric light committee”.  This first met on Saturday, 26-Apr-1890.

At the meeting on Thursday, 11-Dec-1890 a plan was beginning to form.  It was resolved that the best course of action would be to negotiate with a responsible company to erect buildings and plant and to lay mains in order to supply electricity as required.  It seems that they had considered three options, a) the council would take on the construction and operation of the facility which would be financed by a mortgage on the rates, b) the council would provide the plant and get a contractor to operate it and c) get a private company to finance, build and operate, this being the preferred option.  It was felt that this project was not appropriate for a town council.  The first step was to find a suitably qualified electrical engineer to prepare specifications and advise on terms and conditions of a contract with a company as proposed.

Mr. R.E. Crompton was selected for the task at a meeting on 2-Jan-1891.  This was a logical choice, Mr. Crompton had a proven ability with both arc and incandescent lighting and his company Crompton and Co. was a major manufacturer and contractor.

These deliberations were going on against a backdrop of international and local evolutions in the electricity supply industry.  This was the time of the “battle of the currants”.  On one side was low voltage DC generation and distribution, in very crude terms there was direct connection between the consumer’s appliances and the dynamos at the power station.  These systems worked well for small communities clustered around the power station.  It was opposed by promoters of high voltage AC systems.  In these the AC generated at the power station is stepped up to a high voltage for transmission and stepped down again for distribution to the consumer, the key component is the transformer.  Ultimately, the high voltage AC systems were to triumph.  At the local level the neighbouring Brighton and Hove Electric Light company was seeking to expand.  At this time Brighton had established an electricity supply four years earlier and had experience with both AC and DC systems.

Mr. Crompton drew up his report and this was considered and this was considered on several occasions and on 8-Jun-1891 a decision was made to adopt the low voltage DC option.  It is clear from the minutes that they had discussed the AC alternative, but Mr. Compton recommended the DC route because Hove was a compact borough and there would be no problems with transmission.  It was pointed out that several London boroughs had adopted this solution as had parts of New York and Berlin.  Mr. Compton’s report  effectively became basis of the specification which against which bids would be invited and a prospectus for potential shareholders.

The suggested site was bounded on the west by Holland Road with 135 feet of frontage on what is now Davigdor Road.  To the north was a railway goods yard which was home to several coal merchants.  The plan was to have a siding laid so that coal could be delivered by rail.

The plant in the power station was intended to be implemented in phases.  When complete, the main elements were to be:

  • 5 Lancashire boilers rated at 160 p.s.i
  • 3 250 HP Willans dynamo sets
  • 3 100 HP Willans dynamo sets
  • 1 120 cell lead acid accumulator capable of supplying 600 amps for a short period.

Dividing the generating capacity between 100 and 250 HP units suggests that demand was expected to vary during the day.

The plant may have been arranged like this:

The site may have been long and thin making it necessary to use the space efficiently.

The costs for the initial phase with two boilers, three dynamo sets and an accumulator were estimated to be:

  • Plant: £8,297
  • Buildings: £3,000
  • Mains: £12.844
  • Total: £24,141

The cost of the complete scheme was around £50,000.

The public street lighting commitment was for 14 ornamental lampstands along the sea front, each with a 10 amp arc lamp mounted 26 feet above the street which was rated at 2,000 candlepower, the total running costs for 2186 hours were estimated to be £280/year.  Even in 1890, Hove was a sizeable town, so this was not a serious attempt to displace gas lighting.  It seems that the principal objective was to sell electricity to commercial and domestic consumers.  The electricity for these lights was to be supplied at half price, or 4d/unit, the retail price being 8d/unit (more than £1 in today’s money).

The report reads like it has been written to promote a scheme, it suggests that after seven years, 400 houses would be supplied with electricity and profits could be £5,000/year.  It is not unknown for prospectuses to over estimate demand, however, in this case, it was an underestimate, after two years of operation, 200 households were connected.

The minutes of the Electric Light committee meeting on 3-Sep-1891 stated that the text of an invitation to bid for the project had been drafted and an agreement to purchase the Holland Road site had been produced together with an application to borrow £1,400.

On 27-Oct-1891, proposals were received from:

  • The Electric Power and Storage Company
  • The Brush Electrical Engineering Company
  • Crompton and Company
  • The Brighton and Hove Electrical Lighting Company

A few days later, a bid from the Planet Electrical Engineering Company was received, as this had been submitted on time, but delivered late, it was considered.

Only the bid from Crompton and Company was considered to meet the requirements of the commissioners and on 11-Feb-1892, a deed of transfer of the undertaking to Compton and Company was approved.

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Energy Alternatives

The electricity industry took shape in the 1880s.  Initially, it was a “luxury” product consumed by high income households.  Large establishments might have had their own generating plant, but rapid growth in the demand for electricity started when companies were formed to supply consumers from a local power station.  Either by choice or circumstance, many of these companies became owned by local councils, with a little stretch of the imagination, they could be described as being owned and controlled by the community they served.  By the start of the 20th century demand for electricity had grown and the original small power stations with reciprocating steam engines located in residential areas were too small and inefficient to meet the demand, these were displaced by large steam turbine plants located close to a coal supply such as a port, railway depot or even the mine itself.  This became the model used by the industry for a century and it worked well, energy will never be cheap, but its rare to flick a light switch and have nothing happen.  Big nuclear power stations fit into this model.

There are big differences between the late 19th and early 21 centuries, for political and environmental reasons it is desirable to reduce dependency on fossil fuels and many people are uncomfortable with nuclear power.  However, the technologies available make it possible to consider alternatives to the big generator model, for the foreseeable future big power stations will have a role, but it may be possible to stem their growth and possibly even displace some of them.

These comments are based on personal observations, but they may have some wider relevance:

  • Energy consumption can be reduced without a drop in living standards.  In our case, we have steadily migrating to LED lighting, 20 watt compact fluorescent lights have are being replaced by 10 watt or smaller LEDs.  As appliances have died of old age, energy consumption has a factor in deciding on the replacement.  The old washing machine consumed 1.5 to 2.0 kwh/wash, the new one typically uses 0.25 to 0.70 kwh.  There maybe environmental benefits, but our electricity bill is £23/month and falling.
  • Storage is a potential game changer in the way the industry works.  Demand for electricity peaks in the early evening when families are home cooking, staring at a screen or doing homework, at present supply and distribution is set up to meet the peaks and troughs of daily life, if every house had even a small amount of storage, maybe as little as 2kwh, it could be possible to run the generators under constant load with each household having a time slot for charging its batteries.  Grocery deliveries have made us familiar with delivery time slots, doing the same thing for electricity is not such a big step.  Back to economics, there is the potential for buying electricity at off-peak rates (7p instead of 15p/kwh), so there is some potential upside for the consumer.  Storage also helps integrate energy from wind farms in to the energy economy.
  • Back in 1900, if you wanted to generate your own electricity the main options were steam or gas engines, water wheels were an option for those living near a river and wind generation was still being explored.  Even under an cloudy English sky, solar panels can make a contribution.  At present, the economics of home generation are geared towards getting a return-on-investment, however, in conjunction with storage, there is the potential to displace some gas fuelled generating capacity.  Peak demand is in the evening when the sun does not shine bright, if energy generated during the day can be stored for use in the evening, then the load on the grid can be smoothed.  This requires some creative economics.  Some rough calculations suggest that our house’s grid dependency would be decreased by two solar panel mounted somewhere other than on the roof.
  • Cars and vans contain reliable combined heat and power systems, a 2kw alternator provides electricity some of which is stored in the battery and waste heat from the cooling system is used to keep the cabin warm.  Extracting the appropriate components and packaging them as a consumer product might produce something costing less than £1,000, such an installation could produce heat and power during the winter months. These could be gas fuelled.  In the context of a car, this is established technology.  One of the incentives for the development of petrol and diesel engines was the limitation on consumption of town gas.  Any loss in efficiency in electrical generation could be compensated for by the use of waste heat.

Some of this stuff is fanciful and no doubt others could expand the list but the point is there are alternatives to big power station model.

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