European Tribune - Community, Politics & Progress.

I'm published in the FT!

by Jerome a Paris
Fri Apr 7th, 2006 at 05:06:10 AM EST

I just got round to the letter page of the FT, and saw the European Tribune! They actually published the LTE I drafted two days ago!

What is wrong with having low energy prices from a competitive company such as EDF?
Sir, In your front-page lead article on the recent European Commission action in the energy sector ("Energy at heart of EU bid to open markets") you write the following: "Paris was also told that low, regulated power prices made it hard for new companies to get a foothold in the electricity market."
At the same time, you lament in numerous articles that supposed protectionism from various countries, notably France, prevents the competition that would make possible lower prices in the energy sector. If I understand you correctly: EDF is selling its electricity so cheaply that others cannot compete with it, so the French regulator (or, presumably, the European regulator the Commission would like to put in place) should force it to increase its prices to make the market more competitive, in order for prices eventually to go down?
What is wrong with low prices to start with, provided by a company that is both highly competitive and highly profitable in the way that EDF is? It would be appropriate for your journalists to remember that efficient markets do not guarantee lower prices, they only promise more transparent prices, thus theoretically allowing for a better allocation of resources by producers and consumers.
The best way to have lower prices in a highly capital-intensive industry such as energy production is to benefit from lower financing costs via sovereign priced debt - something that sadly European rules no longer allow. Instead, we have chosen to let the private sector invest in gas-fired or coal-fired plants, which are comparatively cheaper to finance and which contribute both to greenhouse gas emissions and to our growing dependency on imported hydrocarbons. It is a myopic choice if there ever was one.
Jérôme Guillet,
Editor,
European Tribune,
75016 Paris,
France

They did not print the link to European Tribune, but hey, the name's there!

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I'm published in the FT! | 33 comments (33 topical, 0 editorial, 0 hidden)

Re: I'm published in the FT! (none / 0)

Excellent. Your place for world domination proceeds apace.

by Colman (colman at eurotrib.com) on Fri Apr 7th, 2006 at 05:09:17 AM EST

Re: I'm published in the FT! (none / 0)

Your plan for world domination ...

by Colman (colman at eurotrib.com) on Fri Apr 7th, 2006 at 05:11:09 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 1)

World domination? How about a real challenge: bringing the WSJ op-ed out of the dark ages.

Way to go Jerome!

There's no such thing as original sin - Elvis Costello

by dvx (dvx.clt ät gmail dotcom) on Fri Apr 7th, 2006 at 05:23:12 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

Great, congratulations - and just beware of the highs!:-)

by Fran (fran at eurotrib dot com) on Fri Apr 7th, 2006 at 05:12:07 AM EST

Re: I'm published in the FT! (none / 0)

I'm just getting started.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Fri Apr 7th, 2006 at 05:20:42 AM EST
[ Parent ]

Re: I'm published in the FT! (4.00 / 2)

Today, the LTE section. Tomorrow, the Op-Ed section!

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Apr 7th, 2006 at 05:21:32 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 1)

And after that it gets... interesting. :-)

by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Apr 7th, 2006 at 05:40:32 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

After that he gets coopted.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Apr 7th, 2006 at 06:05:46 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

You forget that I am already Part Of The System...

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Fri Apr 7th, 2006 at 07:16:05 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

Nah, you're a libertarian socialist mole, like yours truly. But you are dangerously close to the dark side ;-)

It's sort of funny that you're rather far from the Cenrre of ET, being the Editor. What are your thoughts on that?

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Apr 7th, 2006 at 07:21:51 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 1)

And Jérôme reaches for his red card, the crowd goes wild ... the FT is sent off the field!

by Alex in Toulouse on Fri Apr 7th, 2006 at 05:27:34 AM EST

Re: I'm published in the FT! (none / 0)

While we're at it...

Financement de projet et développement durable

I'll email the text to whoever is interested.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Fri Apr 7th, 2006 at 05:46:25 AM EST

Re: I'm published in the FT! (none / 0)

At €5 a pop I hope there isn't an invoice on the way for the articles I've read here ...

by Colman (colman at eurotrib.com) on Fri Apr 7th, 2006 at 05:48:28 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

Heh. I should try that!

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Fri Apr 7th, 2006 at 07:15:26 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

Congratulations. You letter was written so well, even I could understand it. Except for one phrase which no doubt reveals my economic illiteracy: "sovereign priced debt". Google gave no results for it, though many for "sovereign debt". Are the two the same?

Also, regarding Financement de projet et développement durable,

Dans leurs décisions d'investissement, les collectivités locales cherchent à intégrer la notion de "durabilité" inhérente à leurs missions, notamment dans les secteurs de l'énergie et des transports. Le cas de l'énergie éolienne est souvent cité à titre d'exemple.

what does collectivité mean in this context? "Community"? "Civic association"? Not "corporation", right?

The West won the world not by the superiority of its ideas or values or religion, but rather by its superiority in applying organized violence.

by marco (cowannar at gmail punkt com) on Fri Apr 7th, 2006 at 06:27:11 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

"collectivités locales" are all the local public authorities: cities, regions, groups of villages, or other ad hoc groupings in charge of public services.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Fri Apr 7th, 2006 at 07:08:34 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

Great, Jérôme! I thought it was in with a good chance. Be interesting to see if there's any follow-up.

When locusts move on, they leave nothing behind

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Apr 7th, 2006 at 05:54:33 AM EST

Re: I'm published in the FT! (none / 1)

Congratulation Jerome,

with ET, you are slowly creating a very new kind of Think Tank :
virtual, clever, collaborative and anti-brainwashing.

bravo.

by fredouil (fredouil@gmailgmailgmail.com) on Fri Apr 7th, 2006 at 06:29:33 AM EST

Re: I'm published in the FT! (none / 1)

Thanks fredouil. It's good to hear this from you, as someone that often has different opinions than the majority of the site members on a number of topics!

But WE are all creating this together.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Fri Apr 7th, 2006 at 07:14:37 AM EST
[ Parent ]

Nice work, Jerome (none / 0)

And recognition well-deserved.

FYI - please note comments in this witness diary and this one.

It started here.

"Different opinions" is too polite. I say "fucking troll."

"...psychopaths have little difficulty infiltrating the domains of...politics, law enforcement, (and) government." Dr. Robert Hare

by RubDMC (rubdmc at yahoodotcom) on Sun Apr 9th, 2006 at 12:15:43 PM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

Great !

The struggle of man against tyranny is the struggle of memory against forgetting.(Kundera)

by Elco B (elcob at scarlet dot be) on Fri Apr 7th, 2006 at 07:08:34 AM EST

Re: I'm published in the FT! (none / 0)

Félicitations for being published. As some have pointed out, next goal is the op-ed page!

On a different subject, I would like to ask you a question about nuclear energy in France and the consequences it has on security issues and international politics, as well as consumption regulation policy.

If i understood the little i read about energy, nuclear power, because its production cannot be adjusted to meet demand quickly enough, cannot represent too big a share of the electricity production of a single country. It can only be producing the base consumption, around 50% of the total electricity consumed. Knowing, this, what are the consequences of france producing 78% of its electricity by nuclear plants?

I think that this excess capacity originates in wrong estimation of future needs: experts held true that energy consumption and growth grew hand in hand and therefore projected that consumption would be far above what it is today. That, plus the fact that they blinded themselves from new technologies [combined cycles for gaz-powered plants] made them overlook prospects for cheaper production and build far too many nuclear plants. Is this true?

Energy consumption is what energy production depends on. The myth of an electricity so cheap that really is free prevents the development of public policies against energy waste and illogic usage [electricity for heating for exemple]. Electricity production is the result of a political choice: the same money could be invested in reducing usage with only good consequences. As it has been often put, the less polluting energy is the one that has not been consumed. Can that approach, reducing consumption and european energy intensity be used to wait for better technologies?

Rien n'est gratuit en ce bas monde. Tout s'expie, le bien comme le mal, se paie tot ou tard. Le bien c'est beaucoup plus cher, forcement. Celine

by UnEstranAvecVueSurMer (holopherne ahem gmail) on Fri Apr 7th, 2006 at 07:52:36 AM EST

Re: I'm published in the FT! (none / 0)

I forgot to mention security and international relations: i wanted to ask what would happen if, after a problem in a nuclear plant, the population turned againts nuclear electricity: how long would disengagement take?
For intl relations, i wanted to know what were the consequences of the EDF exports of the european markets, how EDF depended on these markets etc...
Thanks

Rien n'est gratuit en ce bas monde. Tout s'expie, le bien comme le mal, se paie tot ou tard. Le bien c'est beaucoup plus cher, forcement. Celine

by UnEstranAvecVueSurMer (holopherne ahem gmail) on Fri Apr 7th, 2006 at 07:55:17 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

EDF owns London Energy, there you have a secure and hungry export market.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Apr 7th, 2006 at 08:00:47 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 1)

they have an export market paid by generous citizens...
my underlying assumption is that that money could have been put to a better use.
That the state garanties electricity at a reasonable price for all is what i believe in. That the state sells what its citizens paid for i dont really agree to, even more where people can make money out of it.
To that you have to add the Kyoto protocol and the EU "pollution" certificates which allow energy companies to make money out of us consuming less. Which is not acceptable.

Rien n'est gratuit en ce bas monde. Tout s'expie, le bien comme le mal, se paie tot ou tard. Le bien c'est beaucoup plus cher, forcement. Celine

by UnEstranAvecVueSurMer (holopherne ahem gmail) on Fri Apr 7th, 2006 at 11:25:56 AM EST
[ Parent ]

Re: I'm published in the FT! (4.00 / 2)

This is the beauty of nuclear power, the capital investments are so immense you can't backtrack.

If we have an accident there is no going back to coal for several decades, during which the population will calm down and start supporting nuclear power again.

This is what Olof Palme and the other Swedish politicians of the 70's thought, kind of "Field of dreams": build them and they can't go away.

And it worked! Despite TMI, Chernobyl and our anti-nuclear referendum more than 80 % of all Swedes yet again support nuclear power. :D

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Fri Apr 7th, 2006 at 11:48:16 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 1)

Was their motivation to wean Sweden off fossil fuels permanently as a reaction to the 1970's oil shocks?

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Apr 7th, 2006 at 11:51:33 AM EST
[ Parent ]

Re: I'm published in the FT! (4.00 / 2)

Yes.

It was partly an environmental decision, to improve air quality and save the remaining rivers from exploitation, partly an answer to the oil shocks and partly a way to guarantee cheap power to Swedish industry, which is probably the most electricity intensive in the world (steel and especially pulp require vast amounts of power).

The Swedish nuclear power program coexisted with the Swedish nuclear weapons program (of which Palme had been a strong supporter) but it was separated during the 60's when the Americans told us to stop playing with nuclear arms and guaranteed us enriched uranium (which is needed for light water reactors).

Earlier our program was based on heavy water reactors and domestic uranium but it was never much of a success. We built a really small combined heat and power reactor in a Stockholm suburb (which was probably meant to be used for manufacture of military plutonium) and then we fucked up a 400 MW heavy water reactor project. Just as the reactor was supposed to go online (after delays, cost over-runs etc) the engineers understood the reactor wasn't safe enough. Oops. Just a few years before the oil crisis, it was ironically converted to an oil plant, making the whole project even more of a farce.

Private industry woke the state from it's natural uranium dreams (called "The Swedish line") by ordering a light water reactor in front of the state's nose, and since then it's been light water reactors all the way.

We ordered three Westinghouse PWR's and nine domestic ASEA BWR's which will serve us into the mid 2040's.

Two of the smallest BWR's where recently closed due to pressure from the evil Greens but no more shutdowns are seen as even remotely realistic. Instead the nuclear industry is uprating the remaining ten reactors so forcefully (with the silent approval of the government (and the Greens)) that the new generation-capacity is greater than the capacity of the two closed reactors.

The closing of the two BWR's has cost the Swedish people more than €2 billion. Every time I see a Green I remind her of how many wind mills, trains and trams you can get for €2 billion. ;)

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Fri Apr 7th, 2006 at 12:12:51 PM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

The French nuclear plants are load following, that is, as power demand is reduced (during the night for example) nuclear power generation is also reduced. I don't know how clever this is from an economic point of view though. With nuclear capital costs very high and nuclear fuel very cheap it makes economic sense to run the plant at full flank around the clock.

On the other hand, France has a giant electricity export market in Italy and also some hydroelectric plants in the Alps that help manage demand. That is, they are used as peak load while the nuclear plants do all the base load (and also more than that).

I don't agree the French blinded themselves by avoiding gas plants. Gas plants carry heavy environmental and geopolitical costs (and lately also financial cost) which nuclear power avoids.

The argument about efficiency is interesting. Obviously conservation is a good thing. But in the end even the power used in a situation with great conservation has to come from somewhere, and then you are back at having to choose among the different kinds of plant.

So, conservation yes!

But first some mighty big reactors. :)

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Fri Apr 7th, 2006 at 11:42:33 AM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

For the geopolitical argument, i don't think it is too important when considering gaz-powered plants. If there is a source of energy that we really depend on, its oil. So if dependance was the thing we were the most scared of we would try to cut that consumption.
As for gaz, since in Europe it comes from Russia, we have a single interlocutor that actually needs to sell it resources for money. Maybe scarcity, in Europe, will be what drives prices up, not politics.

Rien n'est gratuit en ce bas monde. Tout s'expie, le bien comme le mal, se paie tot ou tard. Le bien c'est beaucoup plus cher, forcement. Celine

by UnEstranAvecVueSurMer (holopherne ahem gmail) on Fri Apr 7th, 2006 at 12:56:54 PM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

Oh, a kindred spirit!

Yes, yes, absolutely, mighty big reactors! Fast* reactors too :)

Throttling nuclear reactors works and, for a PWR design, doesn't radically change the thermal efficiency of the station as the hot source, the core, is maintained pretty much at a constant operating temperature/pressure, no matter the energy output. The ability to throttle is more a secondary circuit issue.

There are still a couple of problems for the core with varying power.

For fast power variations, the operator cannot use the primary coolant boration system but must rely on the control rods, shutting down some sections of the core while maintaining reactivity in other sections. There's nothing wrong with that but it makes fuel management even more complicated than it already is at steady power operation. It takes smart, experienced and rigorous operators to pull that trick (but do you want your nuclear power plant operators to be anything but smart, experienced and rigorous?)
Because of poisoning, as much of core must remain at a sufficient neutron density to burn the poisons and avoid accumulations that would make a fast power ramp-up very dangerous. If a core output is brought down too low, the core must be fully shut down and wait for the poisons to decay. Also, even you remain safely above the low power limit, it means that power cannot be ramped up in a snap.
If power throttling requires intermediate insertion of the control rods, the fuel management game becomes tridimensional. The fuel burn-up tends to be skewed towards the bottom of the core and fuel elements span the entire height of the core. So if a section of a fuel element is too burned up, the whole element must be changed. Not very efficient. Mitigated by fuel recycling though but it can shorten fueling cycles and, thus, reactor availability.

(*) Fast as in fast neutrons, of course.

Facts, selfish little bastards. They don't even care about your feelings.

by Francois in Paris on Fri Apr 7th, 2006 at 01:29:42 PM EST
[ Parent ]

Re: I'm published in the FT! (none / 0)

Great, Jerome! Congratulations! Just before I read this post I was thinking, there's so much propaganda being spread that needs to be corrected, and the ET contributors are so well-informed and articulate, they should send out their memes and let them propagate!

by Wolke on Fri Apr 7th, 2006 at 08:10:47 AM EST

Well! (none / 0)

Look at that! You know that I wasn't entirely sure about tone, but I stand corrected. A job well done, felicitation!

So, onwards... Next target: Op-Ed, I presume.

by Nomad on Fri Apr 7th, 2006 at 08:06:42 PM EST

I'm published in the FT! | 33 comments (33 topical, 0 editorial, 0 hidden)

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