Thursday, April 9, 2015

Washington blackout highlighted aging electrical grid

Washington blackout highlighted aging electrical grid

[WASHINGTON] The fact that a severed transmission line in Maryland could cut power to much of the nation's capital became the latest warning sign that the country's aging electrical grid can't meet modern demands.
Tuesday's widespread power outage came just weeks before the Department of Energy (DOE)is expected to release recommendations for modernizing the country's electricity infrastructure. The department recently spearheaded a 15-month review that examined the country's energy transmission, storage, and distribution infrastructure.
The US electrical grid, designed to serve far fewer people than it does today, faces a range of challenges that were unanticipated when it was built, including threats of cyber attacks, a need to incorporate power from renewable energy sources and the likelihood of more frequent and severe storms as a result of climate change.
Among the improvements the DOE may recommend are boosting the system's ability to store electricity for use at peak times, increasing the use of real-time data to respond faster to outages, and making the grid better able to operate seamlessly with a mix of conventional fuels such as natural gas and the more intermittent energy of renewables such as solar or wind.
All those changes would require massive - and expensive - upgrades of the existing transmission system. "All of our critical infrastructures are fragile," said Admiral Bill Gortney, head of US Northern Command.
Much of the backbone of the grid was designed in the 1950s, with 70 per cent of transmission lines and transformers now at least 25 years old, and 60 per cent of circuit breakers dating back about 30 years, according to a report by the National Governors Association. "If Thomas Edison came back and saw the electric grid, he would still recognise it," said Tom Willie, CEO of Blue Pillar, a company that manages backup energy systems for companies.
Much of the current system is too antiquated to take advantage of technologies that can make the grid more efficient.
Crucially, the grid needs to be able to adopt smart technologies that monitor demand fluctuations. It also must find ways to handle input from rooftop solar panels that let homeowners control personal energy use while selling excess power to the grid.
These changes all point to the need for a more de-centralised grid that would be better able to contain the impact of blows to any part of the system, many experts say.
"This grid is likely to evolve away from a centralised system to a hybrid of centralised and more localised controls," said Jeffrey Taft, chief architect for electric grid transformation at the Pacific Northwest National Laboratory. "One of the things being worked on now is a significant effort resulting from Superstorm Sandy to improve the resilience of the grid," he said.
That massive hurricane, which struck the Eastern Seaboard in October 2012, left more than 8 million customers in 17 states without power - more than 1 million of whom did not get service restored for a week or more.
The likely cause of Tuesday's blackout was less dramatic. Although regulators and Pepco, the regional utility, were still investigating the outage, indications are that the power loss was triggered when a 230-kilovolt transmission conductor broke off its support structure and fell, cutting off supply to the switching stations of a local Maryland utility.
This caused a dip in voltage that rippled across Pepco's service area. Government buildings were only without power momentarily, however, as emergency generators kicked in.
Gerry Cauley, president of the North American Electric Reliability Corporation, which monitors and oversees power transmission systems, said that while it was natural to worry about the impact on the nation's capital, the system, worked as it should have. "Sometimes I see a false sense of what the takeaway of such an event is - that the system is fragile," Mr Cauley said."Actually, the grid has many multiple redundant parts and is very robust." But despite its sturdiness, Mr Cauley acknowledged, parts of the grid require modernisation, and he said he expects the Energy Department review will "highlight opportunities," to make upgrades.
Melanie Kenderdine, head of policy at the Energy Department and leader of the study, said earlier this month that the review will deal with "transmission, storage and distribution structure," with "energy asset security" and with how to make the "transition to a low-carbon grid of the future." But Mr Cauley warned against expectations that a large-scale transformation of the grid will happen quickly, noting that it will involve complex permitting processes across every state. "I think we are in a continuous state of modernization of the grid - but there will not be an all-of-a-sudden transformation," he said.
REUTERS

Overdose: The Next Financial Crisis (Video)



Overdose: The Next Financial Crisis



Overdose: The Next Financial CrisisWhen the world's financial bubble blew, the solution was to lower interest rates and pump trillions of dollars into the sick banking system. The solution is the problem, that's why we had a problem in the first place.
For Economics Nobel laureate Vernon Smith, the Catch 22 is self-evident. But interest rates have been at rock bottom for years, and governments are running out of fuel to feed the economy. The governments can save the banks, but who can save the governments? Forecasts predict all countries' debt will reach 100% of GDP by next year. Greece and Iceland have already crumbled, who will be next?
The storm that would rock the world, began brewing in the US when congress pushed the idea of home ownership for all, propping up those who couldn't make the down payments. The Market even coined a term, NINA loans: "No Income, No Assets, No Problem!" Enter FannieMae and FreddieMac, privately owned, government sponsored. Want that vacation? Wanna buy some new clothes? Use your house as a piggie bank! Why earn money to pay for your home when you can make money just living in it? With the government covering all losses, you'd have been a fool not to borrow.
The years of growth had been a continuous party. But when the punchbowl ran dry, instead of letting investors go home to nurse their hangovers as usual, the Federal Reserve just filled it up again with phoney money. For analyst Peter Schiff, the consequence of the spending binge was crystal clear: we're in so much trouble now because we got drunk on all that Fed alcohol. Yet along with other worried experts, he was mocked and derided during the boom.
Have you taken out a mortgage, invested capital or bought shares? If you have, likelihood is you lost out in the latest bust. Governments promised decisive action, the biggest financial stimulus packages in history, gargantuan bailouts: but what crazed logic is this, propping up debt with...more debt? This documentary brings an entirely fresh voice to the hottest topic of today.
Watch the full documentary now

Muddy Waters' once-perfect short-sale track record losing its lustre

Muddy Waters' once-perfect short-sale track record losing its lustre

PUBLISHED ON APR 10, 2015 7:46 AM
Carson Block, founder of Muddy Waters. The latest bearish trade from Muddy Waters on Singapore-listed Noble Group isn't getting the sort of market traction previous wagers by the short seller have had. -- PHOTO: BLOOMBERG
NEW YORK - The latest bearish trade from Muddy Waters on Singapore-listed Noble Group isn't getting the sort of market traction previous wagers by the short seller founded by Carson Block have had.
While Noble shares fell 5.5 per cent on Thursday after Block followed Iceberg Research in questioning the commodity trader's cash flow and management, it's a far cry from the average 20 per cent drop he's gotten on 11 previous occasions. In part, he may just be a little bit late to the trade. The stock had already declined 38 per cent in the 10 months prior to his report.
A closer look shows that Block's once-stellar track record has faltered of late. Since bringing down Sino-Forest Corp. in 2011, a case that burnished his reputation as one of the world's most successful bears, four of the six companies he's publicly targeted have rallied, including American Tower Corp., which added about US$7.7 billion in market value last year alone.
"Being right about a fraud and making money aren't always the same thing," Block said in an e-mailed statement. "When shorting a fraud, a lot of times you have to depend on somebody doing the right thing, be it a regulator, auditor, or board of directors. That can take years to play out."
Here's a look at how Block's trades have performed since going public with the bets.
1. Superb Summit International Group Ltd. (November 2014) (Down 5.8 per cent before trading halted)
Trading of the Chinese timber company has been halted since Block said the company's executives are "champion abusers" of the forestry industry. Superb Summit said in January that the Muddy Waters report "contained misleading statements and fabricated contents."
2. NQ Mobile Inc. (October 2013) (Down 82 per cent)
The Chinese mobile-security company tumbled as much as 63 per cent in New York the day Muddy Waters accused it of being a "massive fraud." That didn't stop shorts though. A continuous series of earnings delays and management changes in the months and years that followed have sent the stock plunging 82 per cent since Block's call.
3. American Tower Corp. (July 2013) (Up 28 per cent)
No Muddy Waters bet has gone as poorly as American Tower, a Boston-based operator of cell-phone antennas and Block's first U.S. target. After dropping just 1.1 per cent the day Block said the company was a "value-destroying investment binge," the stock has surged, adding US$11 billion to American Tower's market value.
4. Olam International Ltd. (November 2012) (Up 22 per cent)
Shares of the Singapore-based commodity trader have jumped since Muddy Waters said the company was likely to fail because of a high debt burden and poor investment decisions. A unit of Singapore's state-owned investment company, Temasek Holdings, has since gained control of the commodity trader.
5. New Oriental Education & Technology Group Inc. (July 2012) (Up 76 per cent)
Shares of the Chinese education company have surged since Block claimed the firm misled investors, adding $1.8 billion in market value. New Oriental has said that a probe by three independent company directors found no evidence to support fraud allegations.
6. Focus Media Holding Ltd. (November 2011) (Up 9.7 per cent before being taken private)
While shares of the U.S.-listed Chinese digital advertising company tumbled 39 per cent the day Block came out with a report alleging the company inflated its ad network numbers, bulls more than recouped their losses after a group of investors led by Carlyle Group took the company private for US$27.5 a share, US$2 higher than what the stock was trading at when Block said he was betting against it.
7. Sino-Forest Corp (June 2011) (Down 74 per cent before trading halted)
Muddy Waters scored its biggest victory with the Canadian-listed Chinese tree planter, which counted billionaire hedge fund manager John Paulson among its biggest shareholders. The company, which was valued C$6.2 billion at its peak, filed for bankruptcy less than a year after Muddy Waters said it lied about its timber assets.
8. Rino International Corp., China MediaExpress Holdings Inc., Duoyuan Global Water Inc. (November 2010 - April 2011) (Down at least 99 per cent)
All three Chinese companies were delisted in the U.S., wiping out US$1.2 billion in market value, after Muddy Waters in separate reports accused their managements of overstating revenue and embezzling funds.
9. Orient Paper Inc. (June 2010) (Down 80 per cent)
The U.S.-listed Chinese paper producer helped launch Block's career as a short seller. Block accused the company of being a fraud, an allegation the firm denied. The shares have lost 80 per cent since Block initiated a "strong sell" call.
Bloomberg

728 X 90

336 x 280

300 X 250

320 X 100

300 X600