Energy return: ratio or net value (revised)

Quite a while back we had a discussion of the idea of Energy Return On Energy Invested (EROEI) as a measure of the viability of solar and wind energy. I did the numbers for solar (including battery backup) and came to the conclusion that EROEI was at least 10 and therefore not a problem.

The issue has come up in an email discussion I’ve been having. Thinking about it, I concluded that using a ratio of energy generated to energy invested is incorrect. As a starting point, I assume that we want to consider energy separately from market goods in general. Producing new energy requires inputs of both energy and market goods (including labour and capital). Think about this example

Technology A uses 1 Mwh of energy input and $180 of market inputs to produce 10 MWh of energy output

Technology B uses 1 Mwh of energy input and $600 of market inputs to produce 20 MWh of energy output

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No point complaining about it, Australia will face carbon levies unless it changes course

That’s the headline for a recent article I wrote for The Conversation. I meant to post it earlier, but didn’t get to it. Now that Trump is gone, there’s near-unanimous international support for border adjustments. But our government thinks it can bluster its way past the problem, as it does on domestic issues. And if Labor has any ideas on the issue, I haven’t heard about them.


A new sandpit for long side discussions, conspiracy theories, idees fixes and so on.

To be clear, the sandpit is for regular commenters to pursue points that distract from regular discussion, including conspiracy-theoretic takes on the issues at hand. It’s not meant as a forum for visiting conspiracy theorists, or trolls posing as such.