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Bonus Content: Renewables Opposition & TPI’s Financial Outlook
Allen, Phil, and Rosemary continue the discussion from Tuesday’s episode, diving into renewables opposition and TPI’s financial situation.
Sign up now for Uptime Tech News, our weekly email update on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on Facebook, YouTube, Twitter, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary Barnes’ YouTube channel here. Have a question we can answer on the show? Email us!
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Allen Hall: So what we’re talking to energy, everything is difficult, so we wind and solar can be difficult to make money in. But some of the discussion about moving back to coal or, or moving back to older sources of electricity generation, their money losers too.
Rosemary Barnes: Yeah, probably even more efficient money losers. And on a larger scale, you know, at least wind and solar, you could lose, lose money a little bit at a time and you don’t lose money on the operation.
Um, you know, it’s, it’s all in the, the, the capital cost. Whereas coal can lose money ev every single, every single day that the plane operates. So I [00:01:00]guess that that’s, uh, yeah, that’s true. It’s not as, not as bad as that.
Allen Hall: So is there a industry fix or is there a hope for the future? Right now, I don’t see it.
Rosemary Barnes: I was reading this book for a little while and I stopped reading ’cause I, um, it had some good ideas, but it wasn’t like totally rigorous in its, um, exploration of all the ideas. I think it’s called The Price is Wrong, or something like that. And it’s about how like, it’s not possible to have a renewables industry that isn’t subsidized by the government.
And, um, there’s some, I I, I think that there’s some truth to that, but I would replace. That there’s, it’s impossible to have a renewables industry if that’s not subsidized. Rather say it’s impossible to have an electricity system that’s not subsidized in some way by the government. Um, and yeah, I mean, just rec recognize that and maybe we don’t need to to fight that, but, um, it, it is always turns like so tribal that everyone’s arguing over who’s got the more subsidies or who’s.
More dependent on subsidies. Um, yeah, it’d be easier [00:02:00] if we could all, you know, get on the same page about climate change and just acknowledge what we needed to do. But, you know, if, if wind and solar power never came along and we didn’t care about climate change, then we’d still be subsidizing, uh, yeah, like coal and, and gas and, uh, all the transmission and, uh, I don’t know, infrastructure.
You need to transport those fossil fuels around. Like, you know, we’d, we’d still be subsidizing because people still need electricity and still get upset if it’s, um, you know. So expensive that you are stuck, you know, choosing whether you want to eat this week or heat your home this week. So,
Allen Hall: well, is it because electricity was late to the game?
The railroads sort of blew through the United States and everywhere else in the world because it was easy.
It missed Australia, but yeah, would would’ve been nice.
Allen Hall: But here, here in America, the railroads pretty much owned most of America very quickly. Uh, and got it done before there was any real. Feedback like they would be today, as soon as you wanna put a transmission tower in somebody’s farm field.[00:03:00]
Huge, huge uproar. States are involved, senators are involved. The government’s all over it. There’s committee meetings. Everything gets really slowed down versus 1860s. It just happened.
Rosemary Barnes: But I think the difference as well, like it’s not like transmission didn’t have these obstacles the first time around, right?
When cities or towns were getting electricity for the first time because there were transmission lines going to them, then it was more obvious what the need was. Whereas now people, they’re like, I already have electricity. And um, you know, they don’t, they don’t wanna be disturbed further when the. Yeah, the case isn’t as obvious to them for what the benefit will be to them.
Allen Hall: Is it such that the general public doesn’t realize that their survival depends upon electricity? On some measure, we were just driving and Claire and I, our producer, were just driving through a certain part of the Midwest and we were noticing there were no houses, and then it became obvious, well, there’s [00:04:00] no power.
To this part of the country. There are no transmission lines. There are roads, but there are no transmission lines until you get to a railroad track. And then there are power lines running alongside the railroad tracks, so the railroad and electricity go together. And whenever those two sort of meet, there is a little town, but outside of that zero, that happens on a bigger scale, if you don’t have electricity to power your industry, your cities, your communities.
You’re really in a world of hurt competing against the rest of the world. When do we realize that? Isn’t that why China is going so fast, so hard to electrify? Because it brings civilization, advanced civilization? India’s trying to do the same thing. It seems like in some aspects we just go, well, I don’t need it.
You do need it. Your kids need it, your grandkids need it.
Rosemary Barnes: But there’s a different, um, argument you’re trying to make because, I mean, I [00:05:00] doubt that there’s many towns in the US that aren’t connected to the electricity grid. There’s at least there’s some, there’s, there’s quite a few in Australia, but, um, you know, with microgrids and, and stuff like that.
So maybe that’s a, a bit of a special case. Um, but what you’re talking about in most. Yeah. Places like Australia and the US you’re not talking about getting electricity to places for the first time, which is what they are doing in, um, in China and in India when they’re rolling out, um, new renewables infrastructure, um, you know, like big transmission lines to connect up.
Good. Uh, yeah. Both those countries have, um, high voltage DC. Uh, long, long connections that are, yeah, electrifying parts of the country that haven’t, um, been connected to the grid before. So they’re more, the, the people there are gonna be more like people were a hundred years ago when they were getting connected for the first time in America, or, um, Australia or, or wherever.
Um, their, you know, [00:06:00] the, the benefit to them is obvious. I do think that it’s like with most new technologies where you gotta find the niches where people, like, it’s a, it’s a real solution for them. That’s the first place to roll it out. And people who aren’t really suffering don’t see as much need to change until the technology gets like, so much better.
Allen Hall: Who are the proponents, the loud vocal proponents to bring more electricity to New York City or to Los Angeles or to Houston? I don’t hear them though those voices aren’t nearly as loud as the voices that are saying, we don’t need wind, we don’t need solar. We’re totally fine the way that we are. What am there?
There is a, a very quiet opposition or proponents of electricity, I would say, uh, versus the opposition, which are very vocal about. We don’t need wind and solar. I think they totally do. I don’t understand where they’re even coming from in terms of big picture
Rosemary Barnes: in the big [00:07:00] cities, you kind of maybe hit from two ends because there’s this one kind of, um, one group of people who are climate concerned.
Um, and so they do want renewable energy. However, they think that the solution is that you just need to use less electricity. And so, uh, I think there’s like a really large proportion of city populations of people who. Who are cared about climate change that think that you can solve it by, um, consuming less.
All the things that are left over are, you know, like little incremental things that don’t add up to anything. Like what we’re gonna need to have everyone move to electric vehicles and have everyone move off the gas network and onto heat pumps for heating. Um, you know, there’s so many huge chunks of load that need to be added in order to.
Decarbonize and I don’t think that, I think that, yeah, like the half of the general population, like non-expert population, that should be on the side of the energy transition. I don’t think they realize that. We’ve been really, really conditioned to believe [00:08:00] that if it’s not, you know, if it’s not hurting, it’s not working.
So like it’s like you have to. You have to suffer as a condition for a solution to be plausible. So I think that, yeah, there, um, there’s a lot of, a lot of people that are really obsessed with individual action and how we’ve just gotta convince people that they should, you know, do all those little things.
Um, and I’m not sure they’re aware of just, yeah. Extent of the problem. I
Allen Hall: think you’re right about that. And been listening to a couple of podcasts while working that are still focused on the climate action slant, I’ll call it, to drive, uh, people to do something about their electricity or the coal factory or whatever they got going that.
But that argument is just a losing argument today in the climate we’re in. [00:09:00] You’re not competing against, uh, someone who’s gonna have a discussion with you about climate. You’re competing about someone who is trying to have an economic argument, a strength argument versus a weakness argument. Uh, so the.
You’re talking on the sidelines about climate. When your world economies are colliding, it just seems like the language needs to shift a little bit to focus in on what is gonna move people to some sort of consensus.
Phil Totaro: This, this also goes back to my whole thing with, you know, industry trade associations or lobby groups, because they are very much focused on politics and making everything into a political argument as opposed to leveraging the people that actually have the economic focused argument and data to be able to support [00:10:00] the position.
And it, it’s, we’re just not hearing from the right people. That have the right knowledge and information and, and it’s not just exclusive to the us this, you know, has happened in Europe. Um, I’m sure it, you know, Rosie can speak to how the degree to which this has happened in Australia as well. But the, the reality is you, you, the people with the real.
Knowledge and information that people actually need to be able to meaningfully change their argument and change habits, and change behavior and thought patterns. They get drowned out by the people who shout the loudest or who are politically connected.
Allen Hall: Sure. But that’s been true for time immemorial.
What, what I think is happening at the minute is if everybody wants to talk about power is electricity is power. Basically, it’s what we’re saying. Electricity is economic power. Then you want as much electricity as you could possibly generate. Are you gonna spend [00:11:00] twice as much to do it or are you gonna do it as cost efficiently as you can?
Wind and solar are gonna be those two answers. Plus battery being the third. That’s gonna be the lowest cost way to do it. If you’re trying to grow your economic power relative to all your economic neighbors, that’s the way to do it. So why are we having a discussion about. We’re gonna go back to coal in the United States and we just drove through coal country a couple days ago.
Why are we having a discussion about going back to coal? ’cause it’s so expensive. Why would we do that?
Rosemary Barnes: It’s really weird. ’cause I mean, renewables didn’t kill coal in the US right? It was gas. Gas killed coal.
Allen Hall: Yeah. Oh yeah. Gas killed coal for sure. Well, coal killed coal because you don’t wanna live next to a coal generation plant.
You really don’t. Especially 30, 40 years ago, you totally didn’t before the emission equipment was installed. Not nice. Does that make sense? Like we’re, we’re just not pushing if, if, if the, everybody’s [00:12:00] talking power. Let’s talk power. Let’s talk cheap power. Let’s go,
Rosemary Barnes: let’s buy TPI. Come on Rosemary, let’s go.
I’ve got about $2 50 spare at the moment. So if you think that when it kinda gets to the point where that Yeah, that can give me a, a stake then happy to, to jump in,
Allen Hall: what kind of management, Rosemary, would you put into a TPI? Would you put in a engineering focused management team, or are you putting in a development team?
Are you putting in just a pure, raw, old school manufacturing sort of management and system? What does that type of business require?
Rosemary Barnes: I think that there’s a real tension that makes that like an unanswerable question and why it’s the whole industry is struggling and not just one or two companies based on their decisions because.
You need in the long term, you need a good product. It means you need a good engineering team to design it and, um, you know, maintain a whole lot of, uh, institutional knowledge in, in [00:13:00] house. Um, and to be able to maintain, you know, deal with warranty claims and make sure that you don’t have more in the future.
But that’s super expensive. And the reality of today is that the cost, like the, what you can charge for a wind turbine blade is just, it’s, it’s too low to support that the kind of engineering that it actually needs. And so, um, yeah, that’s why, that’s why no one, no one can make the equation work, you know, to have the product sufficient and to make enough money to stay in business.
I, I don’t know, I kind of, and the way I’ve seen it, probably like the last. Nearly decade that I’ve been saying this is I, I just feel like a bunch of companies are going to go bankrupt, um, over not being able to, you know, whoever has the first, you know, huge warranty claim that they, they just can’t support and they go bankrupt.
Few of them happen and probably people will start, um, you know, some Chinese companies will kind of rush in to fill the void as well, but at the end of the day, you’re still gonna end up, um, you know, like having to move through this [00:14:00] and, and. Pay for the engineering. You, you just like in 20 years time, you can’t be anywhere else.
Um, unless we just didn’t have a whole lot of wind energy growth.
Allen Hall: Let’s talk about wind energy growth for a minute. With the shift, uh, in terms of production tax credits going away in the United States and wind has to stand on its own two feet discussion that’s happening at the moment. When you remove those.
Production tax credits and investment tax credits. Wind is still cheaper. Solar is still cheaper than pretty much any other, well, no, it is cheaper than any other, uh, power Source does that Then when they do that comparison, when you start to say, oh, well I’m gonna put a, a gas fired system in five years from now, I’m gonna pay a fortune for it because everybody wants to do that, versus just buying some wind turbines and solar panels and getting the same result.
Does that allow wind and solar then to raise prices where? They can become more [00:15:00] profitable, more stable over time.
Rosemary Barnes: I, I actually think no, because there’s too, there’s so many companies that are so used to, you know, just slashing costs so much. I just think there’s just too many, there’s too many companies.
Allen Hall: Too many companies in it.
Rosemary Barnes: Yeah. And, um, some. Uh, can go for at least a period of time making a loss on every product they sell. But, you know, there’s so many companies, and especially if you include China in, in that, they’re just, uh, I don’t know. It’s, it’s just not, um, viable to me to see how, like, which company is gonna be the one that starts charging more.
Um,
Allen Hall: are you able to have an independent blade company anymore, or do you need to be attached to an OEM?
Rosemary Barnes: I don’t see why that it, you know, the reason why that there were. Independent blade companies to start with was, was ’cause people wanted to have more, a more secure supply chain so that, you know, if something happened with one of the, the factories and they’ve still got another option to fulfill all the orders that they’ve got for a certain [00:16:00] platform.
And I don’t see that changing, um, you know, the fundamental reason for it. So, um, yeah, I, I, I, I don’t think anything’s changed there.
Phil Totaro: This also goes back to the argument of, does an industry. Flourish when it’s vertically integrated, or does an industry flourish when you’ve got all these separate little companies?
Allen Hall: It’s more distributed.
Phil Totaro: Exactly. Uh, a distributed model for supply chain, and right now we’re in. That phase of an industry growth where if you wanna be profitable, vertical integration’s, pretty much the way to go. Um, it’s also why it’s slightly confounding. Why ge? Bought LM in the first place because they, you know, brought them in because they wanted Yeah.
To vertically integrate it. But then they said, oh, but you’re, you’re gonna keep selling blades to everybody else and [00:17:00] then we’re gonna go use TPI and maybe some other companies to, you know, source blade designs and, and blades for specific. Makes and models of turbines. So why would you, why would you vertically integrate a, a capability like Blade Manufacturing and then not fully leverage it?
Rosemary Barnes: You know what, at the time that they were purchasing LM and I was working there, no one could understand it. And we kind of came to the conclusion, well, we’re engineers, not business people. So, you know, um, presumably. Presumably makes sense to, uh, a team of MBAs from ge. But now I, I kind of think that it, it, it did, it wasn’t that we didn’t understand, it’s that it didn’t really make sense the, the way that they did it, at, at least, um.
Yeah. I, I, I don’t think that they, I think that the team at the time really did intend to keep LM doing basically what it did, and they didn’t quite realize how much OEMs wouldn’t really like it. Um, like they didn’t like the vibe, even though, [00:18:00] like I can tell you, it really, really, things didn’t change so much at LM in the first few years, but, um, to an external OEMs.
Perspective now they’re buying blades from their competitor. So it doesn’t really feel like as much diversification as it feels like giving away all of your trade secrets to a, a competitor. So I think that they underestimated how much that that vibe would, um, would exist.
Allen Hall: What was the GE drive to change management and change culture at lm At other acquisitions that I’ve been around with ge.
Instantaneously. The old company is over, the new company is here, management changes, structure changes. They’re relatively quick at doing it, and then you’re part of the larger GE almost immediately. At lm, it never seemed to kick in that way. Even though they were selling blades to other companies besides obviously ge, but that hadn’t changed GE at other facilities, they would [00:19:00] still just take it over and call it ge, change the name on the building, and boom, it is now a GE facility and run with it.
Why did they not do that at lm? And was it more of a just cultural difference or was it a financially driven. Decision, I would
Phil Totaro: suggest it was cultural. You think it’s cultural? I, I think so, to be honest, because they, they, with the Danish management, I don’t think they wanted to. Uh, you know, immediately make a significant amount of changes because they knew that LM would lose customers if they immediately kind of vertically integrated LM as now a GE company.
I, I think they wanted to maintain that brand identity. And so more than a financial thing, I think it was a cultural thing and a brand thing to start with. But I think that [00:20:00] ultimately ended up being potentially the wrong thing. Either they could have bought and owned it and operated it as a separate, you know, uh, literally separate, you know, just an owned entity of GE Renova.
But it maintained the brand and, and the, you know, operational philosophy forever. But they, they. Owned it, and then it was like, well, we’re gonna integrate it. We’re not gonna integrate it. They started exchanging all this ip, you know, all the GE Renova Blade technology IP got assigned to LM and then got assigned back to GE Renova.
I mean, they, yeah, I, they, so I don’t think they, they really manage that well.
Allen Hall: Yeah. I mean, it’s hard to know, right? It’s, you can’t predict that. But I’m now curious, Rosemary, because I’ve. Listen to you describe LM quite a bit, and now I know a lot more about Danish culture and Danish companies than five years ago.
Clearly, [00:21:00] if GE had come in and had been, we’re clearinghouse, we’re gonna vertically integrate this company into the greater ge. The employees revolted, would they have lost the critical staff that they needed to run the place?
Rosemary Barnes: I don’t think so. Um, where are they? Where are they gonna go?
Allen Hall: No. Well then there’s vest, there’s other, at the time there were a lot of places to go.
Rosemary Barnes: Yeah. And I mean, people were moving, moving around. But you know, it’s, you’re talking about hundreds of engineers all at once in, um, the town Coaling that most of LM engineers work in is, um. 60,000 or something. In that area. In that area. Um, so yeah, uh, it’s not end Danish. People hate to move house,
Allen Hall: but it’s an American company coming into Denmark.
There’s that label that goes along with it. Besides the culture aspects, just having the moniker, the big meatball on the [00:22:00] side of the building would mean something. To Denmark.
Rosemary Barnes: Yeah. Yeah. But I, I don’t think that they would’ve seen, um, a sudden rush. I think that they would’ve seen a little bit higher than normal at attrition.
That’s, that’s my gut feeling. Okay. ’cause I just
Allen Hall: feel like in some aspects, GE did try to. Set things up in certain ways to make it run in a certain fashion. In other ways they didn’t, they just left it alone.
Rosemary Barnes: Yeah, no, I think that they took over with one idea and then their GE management changed and had a different idea because it doesn’t make any sense that they, they came in, um, this huge company of 300,000 plus global employees bought a company of about 10, 15,000 at the time.
Um, and then for all of the stuff where it was duplicated between, I mean, except for some, some corporate stuff, I’m sure that some corporate stuff got, you know, LMS version of it got slashed and, um, GE took [00:23:00] over. But for, for the bulk of the stuff that mattered to the company, um, it was the Tony Company whose.
Team stayed. And the GE one left, like there wasn’t a GE Blade team anymore after they bought lm. That was, they now worked for lm. Um, and, you know, across, across the board for everything. Technical, technical, um, that’s how it was. And then they, five years later, they’re like, actually no. Now we’re gonna get rid of the LM team and have the GE one.
I mean, why would you do that? To get rid of the. Small amount of in-house expertise you had, uh, um, one day and then a few years later just flip and like, no, we’re going back to our, like, they didn’t, didn’t retain you. You can’t just slash uh, get rid of a team and then five years later be like, okay, now the team starts up again.
Like, everyone wasn’t just like there hibernating waiting for, um, g to tell them that they could work for them again. So it obviously you would never go into that without your long being, your long-term plan. So that’s why I’m [00:24:00]pretty sure that they changed their mind.
Allen Hall: You could do that. If TPI exists without TPI, I don’t think they make the moves with LM like they’ve done
Rosemary Barnes: because they’ve got the backup.
Allen Hall: Yes. And now that TPI is on the rocks now I wonder if they’re rethinking the lm.
Rosemary Barnes: I mean, gee, I’ll buy T-P-I-T-P-I and uh, re rinse and repeat.
Allen Hall: Well, I don’t think they’re gonna, I you may, they, they may be forced into doing it just to keep the production line going. That happens quite a bit in business where you’re.
Buy your suppliers to keep the supply chain going. But the lm, it felt like for probably a year now, that GE was going to try to sell LM off in pieces or whatever they were gonna do. Does that stop, does GE think No, no, no, no, no, no, no. I don’t wanna do that because I want, I need a factory in North Dakota that makes blades.
I need, I need blade factories. I own blade factories. I don’t wanna lose blade factories, I don’t wanna sell ’em off right now because I’m concerned about my other supplier, [00:25:00] TPI, not being here in a year,
Rosemary Barnes: but it’s too late. They’ve already, LM has like one or two factories left. I mean, some of them are GE factories, but some of them have been just closed or um, sold to competitors.
So. Um, it’s, it’s too, it’s too late for that. That’s why I, I, I, um, yeah. Like I said, you know, when the sale happened, we all assumed that these, you know, you learn something in an MBA and that gives you kind of an insight into how, how to manage these things because like, it obviously is not it, like to the average worker on the floor, it doesn’t make any sense how that you can close something and then realize it was a bad idea and then just open it again.
Like it doesn’t, it’s obvious that it can’t work like that. But that’s just what we see continuing to happen. So I’m questioning if an MBA is even makes you the smartest person in the company.
Phil Totaro: So here’s a message to all of our listeners. By the way, if you’re, particularly if you’re an engineer, if somebody’s making a business move and they can’t explain it to you in a way that you as an [00:26:00] engineer understand it, like Rosie just explained, then they are making a really bad business decision and you need to get.
Outta that ship.
https://weatherguardwind.com/renewables-tpi-finance/
Renewable Energy
Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits
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Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits
Rosemary reports back on her visit to multiple Chinese renewable energy companies, Vineyard Wind activates a $69.50/MWh PPA with Massachusetts utilities, and Bronze Age jewelry halts a German wind project.
Sign up now for Uptime Tech News, our weekly newsletter on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on YouTube, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary’s “Engineering with Rosie” YouTube channel here. Have a question we can answer on the show? Email us!
[00:00:00] The Uptime Wind Energy Podcast brought to you by Strike Tape protecting thousands of wind turbines from lightning damage worldwide. Visit strike tape.com and now your hosts.
Allen Hall 2025: Welcome to the Uptime Wind Energy Podcast. I’m your host, Allen Hall. I’m here with Yolanda Padron in Austin, Texas, who is back from the massive wedding event. Everybody’s super happy about that, and Rosemary Barnes had her own adventures. She just got back from China and Rosemary. You visited a a lot of different places inside of China.
Saw some cool factories. What all happened?
Rosemary Barnes: Yeah, it was really cool. I went over for an influencer event. So if you are maybe, you know, in the middle of your career, not, not particularly attractive or anything you might have thought influencer was ruled out for you as a career. No one, no one needs engineering influencers in their [00:01:00] forties.
It’s incorrect. It turns out that’s, that’s where, that’s where I, I found myself. It was pretty cool. I, I did get the red carpet rolled out for me. Many gifts. I had to buy a second bag to bring home the gifts, and when I say I had to buy a second bag, I had to mention. Oh, I have so many gifts, I’m gonna need another bag.
And then there was a new bag presented to me about half an hour later. But, so yeah, what did I do? I got to, um, as I was over there for a Sun Grow event. Huge, huge event. They, um, it’s for, it’s for their staff a lot, but it’s also, they also bring over partners. They also bring over international experts to talk about topics that are relevant to them.
Yeah. They gave everybody factory tours in, um, yeah, in, in shifts. Um, I got to see a module assembly factory, so where they take cells, which are like, I don’t know, the size of a small cereal box, um, and assemble them into a whole module. Then the warehouse, warehouse was [00:02:00] gigantic. It, um, was, yeah, 1.8 gigawatt hours worth of cells that couldn’t hold in that one building.
They’re totally obsessed with fire safety there in everything related to batterie, like in the design of the product, but also in, in the warehouse. And they do, yeah, fire drills all the, all the time. Some of them quite big and impressive. Um, I saw inverter manufacturing facility that was really cool.
Heaps of robots. Sw incredibly fast. Saw a test facility.
Allen Hall 2025: So was most of the manufacturing, robotics, or humans?
Rosemary Barnes: Yeah. So at the factory it was like anything that needed to be done really fast or with really good quality was done by robots. So they had, um, you know, pick and place machines putting in. Um, you know, components in the circuit board, like just insane, insane rate.
I’m sure it’s quite, quite normal, but, um, just very fast. Everything lined up in a row. Most of their quality control is done by robots. Um, so it does well it’s done by ai, I should say. [00:03:00] Taking photos of, of things and then, um, AI’s interpreting that. Repairs, I think were done by humans. There were humans doing, um, like custom components as well.
Like not every product is exactly the same. So the custom stuff was done by humans.
Allen H: So that’s the Sun Grove facility, right? You, but you went to a couple of different places within China?
Rosemary Barnes: Yeah, I went to another, a factory, a solar panel, a factory, um, from Longie. That was really cool too. I got to see a bit more probably of the, um, interesting, interesting stuff there, like, uh, a bit more.
Um, yeah, I don’t, I dunno, processes that aren’t, aren’t so obvious. Not just assembly, but um, you know, like printing on, um, bus bars and, you know, all of the different connections and yeah, it was a bit, a bit more to it in what I saw. Um, so that was, but it, it’s the same, you know, as humans are only involved when it’s a little bit out of the.
Norm or, um, where they’re doing repairs, actual actually re [00:04:00]repairing. You know, the robots or the AI is identifying which components don’t meet the standard and then they’ll go somewhere where a human will come and, um, fix them.
Allen H: Being the engineer there. Did you notice where the robots are made? Was everything made in China that was inside the factory or were they bringing in outside?
Technology.
Rosemary Barnes: I didn’t think to look for that, but I would assume that it was Chinese made, also
Allen H: all built in country
Rosemary Barnes: 20 years ago that wouldn’t have been the case, but I think that China has had a long, a long time to, to learn that. Again, it’s not like, it’s not, it’s not rocket science. These are, these are pick and place machines, you know, like I remember working on a project very early in my career, so.
Literally 20 years ago, um, I was working with pick and place machines. It’s the same, it’s the same thing. Um, some of them are bigger ’cause they’re, you know, hauling whole, um, battery packs around. It’s just the, um, the way that it’s set up, but then also the scale that they can achieve. You just, you can’t make things that cheap if you don’t have the [00:05:00] scale to utilize everything.
A hundred percent. Like I said, wind turbine towers is a really good example. ’cause anyone, any steel fabricating
Allen H: shop
Rosemary Barnes: could make a wind turbine tower. Right? They, they could, they could do that. You know, the Chinese, um, wind turbine tower factories have the exact right machine. They don’t have a welder that they also use for welding bits of bridges or whatever.
Uh, they have the one that does the exact kind of world that they need, um, for the tower. They, you know, they do that precisely. Robotically, uh, exactly the same. And, you know, a, a tower section comes on, they weld it, it moves off to the next thing, and then a new one comes on. They’re not trying to move things around to then do another weld in the same machine.
You know, like they’re, um, but the exact right. Super expensive machine for the job costs a whole bunch to set up a factory. And then you need to be making multiple towers every single day out of that factory to be able to recoup on your cost. And so that is [00:06:00] the. The, um, bar that is just incredibly hard slash impossible for, um, other countries to clear.
Allen H: Can I ask you about that? Because I was watching a YouTube video about Tesla early on Tesla, where they wanted to bring in a lot of robotics to make vehicles and that they felt like that was the wrong thing to do. In fact, they, they, they kinda locked robots in and realized that this is not the right way to do it.
We need to change the whole process. It was a big deal to kind of pull those. Specialized piece of equipment, robots out and to put something else in its place in that they learned, you know, the first time, instead of deciding on a process, putting it in place and then trying to turn it on, see if it works, was to sort of gradually do it.
But don’t bolt anything down. Don’t lock it in place such that it doesn’t feel like it’s permanent. So you engineer can think about removing it if it’s not working. But it sounds like this is sort of the opposite approach of. A highly specialized [00:07:00] machine set in place permanently to produce. Infinite amounts of this particular product, does that then restrict future changes and what they can make or, I, I, how do they see that?
Did, did you talk about that? Because I think that’s one of an interesting approaches.
Rosemary Barnes: I didn’t actually get as much chances I would’ve liked to speak to engineers. Um, I was talking mostly to salespeople and installers. Um, so they know a lot, but I couldn’t, um, like in the factory tours, I was asking questions.
Um. That kind of question and, and they could answer all, all that. Um, but outside of that, and I couldn’t record in the factory obviously. Um, but I did, I did take notes, but what I would say is that they would have a separate facility where they would be working out the details of new products and new manufacturing processes and testing them out thoroughly before they went and, you know, um, installed everything correctly.
But what I do hear is that, you know, especially with solar power. Maybe to [00:08:00] batteries to a lesser extent. You, you know, you like, you have these kind of waves of technology. Um, so you know, like everyone’s making whatever certain type of solar cell and then five years later, um, there’s a new more efficient configuration and everybody’s making that.
And I know that there are a lot of factories that kind of get scrapped. Um, and the way that China’s set up their, like, you know, their economy around all this sort of thing is set up is that it’s not that, like every company doesn’t succeed. Right. They SGO was a big exception because they’ve been going since 1997, I think it was.
It was started by a professor quid his job and hired a room across the, across the road from his old university and, you know, built his first inverter and, um, you know, ’cause he, he could see that. Uh, the grid was gonna have to change to incorporate all of the solar power that was coming, which to be honest, in 1997, that was like pretty, pretty farsighted.
That was not obvious to me when I started working in solar in mid two thousands. And it was not obvious to me that this was a winner.
Allen H: Well, has sun grow evolved then quite a bit? ’cause if you’re [00:09:00] saying that they’ve minimized the cost to produce any of their products by the use of robotics, they have been through an evolutionary process.
You didn’t see any of the previous generations of. Factories. You, you were just seeing the most modern factory that that’s actually producing parts today. So is that a, is that a, is that just a cost mindset that’s going on in China? Like, we’re just gonna produce the lowest cost thing as fast as we can, or is it a market penetration approach?
What are, what were, were the engineers in management saying about that?
Rosemary Barnes: I think there’s a few different aspects to that, like within China. So Sun Grow is the big company with a long track record and they’re not making the cheapest product out of China. So I think that they are still trying to make the cheapest product, but they’re not thinking about it just in the purchase price.
Right. They’re thinking more in terms of the long, long term. You know, they’ve been around for 30 years and probably expect to be around for another 30 years. They don’t wanna be having [00:10:00] recalls of their products and you know, like having to, um. Installers in particular are probably working with them because they know that they won’t have to go back and do rework and the support is good and all that sort of thing.
So they’re spending so much money on testing and you know, just getting everything exactly right. But I don’t think that that’s the only way that China is doing it. There’s, you know, dozens, probably hundreds of companies. Um. Doing similar stuff between Yeah, like solar panels and associated stuff like inverters and, and batteries.
So many companies and all of them won’t succeed. You know, sun Girls Facility in, I was in her and it’s huge, you know, it’s like a, a medium sized country town. Just their, um, their campus there, they’re not, they’re not scrapping that and moving to a new site, you know, they’re gonna be. Rejiggering and I would expect that, you know, like everything’s set up exactly the way it needs to be, but it’s not like gigantic machines.[00:11:00]
It’s not like setting up a wind turbine blade factory where it’s hard if you designed it for 40 meter blades, you can’t suddenly start making 120 meter blades. Like it’s, they will be able to be sliding machines in and out as they need to. Um, so I, I, yeah, I guess that it’s some, some flexibility. But not at the cost of making the product correctly.
Allen H: Did you see wind turbines while you were in China?
Rosemary Barnes: I, the only winter I saw, I actually, I saw, because I caught the train from Shanghai, I actually caught the fast train from Shanghai to, which is about, it depends which one you get between like an hour 40 or three hours if it stops everywhere. Um, and I did see a couple of wind turbines on the way there, out the window, just randomly like a wind turbine in the middle of a, a town.
Um, so that was a bit, a bit interesting. But then in the plane, on the way back, the plane from Shanghai to Hong Kong, I, at the window I saw a cooling tower of some sort. So either like a, yeah, some kind of thermal [00:12:00] power plant. And then. Around all around, well, wind turbines, so onshore wind turbines. So I don’t know.
Um, yeah, I, I don’t know the story behind that, but it’s also not a particularly windy area, right? Like most of the wind in China is, um, to the west where, uh, I wasn’t
Allen H: as wind energy professionals, staying informed is crucial, and let’s face it. That’s why the Uptime podcast recommends PES Wind Magazine. PES Wind offers a diverse range of in-depth articles and expert insights that dive into the most pressing issues facing our energy future.
Whether you’re an industry veteran or new to wind, PES Wind has the high quality content you need. Don’t miss out. Visit PS win.com today. So there are two stories out of the US at the minute that really paint a picture of the industry. It was just being pulled in opposite directions. The Department of Interior announced agreements to terminate two more.
Offshore wind leases, uh, [00:13:00] Bluepoint wind and Golden State wind have agreed to walk away from their projects. Global Infrastructure Partners, which is part of BlackRock, will invest up to $765 million in a liquified natural gas facility instead of developing blue point wind. Ah. And Golden State Wind will recover approximately $120 million in lease fees after redirecting investment to oil and gas projects along the Gulf Coast, and both companies say they will not pursue further offshore wind development in the United States.
Well, we’ll see how that plays out. Right? Meanwhile. In Massachusetts Vineyard Wind, which has been fighting with GE Renova recently has activated its long awaited power purchase agreement with three utilities. The contract set a fixed electricity price of drum roll please. [00:14:00] $69 and 50 cents per megawatt hour for the first year and a two and a half percent annual increase.
Uh, state officials say the agreements will save rate payers $1.4 billion over 20 years. So $69 and 50 cents per megawatt hour is a really low PPA price for offshore wind. A lot of the New York projects that. Renegotiated we’re somewhere in the realm of 120 to $130 a megawatt hour, and there’s been a lot of discussion in Congress about the, the usefulness of offshore wind.
It’s intermittent blahdi, blahdi, blah. Uh, but the, the big driver is what costs too much. In fact, it doesn’t cost too much. And because it’s consistent, particularly in the wintertime, uh, electricity prices in Massachusetts in the surrounding area are really high. ’cause of the demand and ’cause how cold it is that this offshore wind project, vineyard wind would be a huge rate saving.
And [00:15:00] actually the math works out the math. Math everybody. Do you think this is, when we go back five years from now, look back at this. This vineyard wind project really makes sense for Massachusetts.
Yolanda Padron: I think it really makes sense for Massachusetts. I’m really interested to know what the asset managers are thinking on the vineyard wind side, um, and if they’re scared at all to take this on.
I mean, it’s great and I’m sure they can absolutely deliver. Like generation I don’t think should be an issue. Um. I just don’t know. It’s, it sounds like they’re leaving a lot of money on the table.
Allen H: I would say so, yeah. But remember, the vineyard win was one of the early, uh, agreements made when things were, this is pre Ukraine war, pre Iran conflict on a lot of other, a lot of other things.
It was pre, so I remember at the time when this was going on that. P. PA prices were higher than obviously a lot of other [00:16:00] things. Onshore solar, onshore wind, it would, offshore is always more expensive, but I don’t remember $69 popping up anywhere in any filing that I remember seeing. So even if they had said $69 five years ago, I think that would’ve still been like, wow, that’s pretty good for an offshore wind project.
And now it looks fantastic for the state of Massachusetts
Yolanda Padron: because I know that there’s sometimes, and we’ve talked about this in the past, right? There are sometimes projects where, you know, you think you, you’ve got a really good price and you’re really excited about it, and then it goes into operation and then like a couple years down the road, prices increase quite a bit and it’s not the worst thing in the world.
But you do just kind of think a little bit like, I wish I could. Renegotiate this or you know, just to get, to get our team a bit of a better deal or to get a bit more money in operations and everything.
Allen H: Does this play into Vineyard wind claiming $850 [00:17:00] million in dispute with GE Renova that at $69 PPA, there’s not a lot of profit at the end of this and need to get the money out of GE Renova right now, and maybe why GE Renova wants to get out of this because they realize.
The conflict that is coming that they need to separate the, the themselves from this project. It’s, it’s very, as an asset manager, Yoland, as you have done this in the past, would you be concerned about the viability of the project going forward, or is all the upfront costs. Pretty much done in that operationally year to year.
It’s, it’s not that big of a deal.
Yolanda Padron: As an asset manager taking this on, I’d probably have started preparation on this project a lot earlier than other of my projects like I do. I know that usually there’s, you know, we’ve talked about the different teams, right, throughout the stages of the project until it goes into operations, [00:18:00] but.
And usually you don’t have a lot of time to prepare to, to make sure all of your i’s are dotted and t’s are crossed, um, by the time you take the project and operations from a commercial standpoint. But this project, I think would absolutely, like you, you would need to make sure that a lot of the, of the things that you’re, that might be issues for some of your projects like aren’t issues for this project.
Just to make sure at least the first few years you can. You can avoid a lot of, a lot of turmoil that the pricing and the disputes and the technical issues are gonna cause you, because I feel like it’s just, there’s, there’s just so many things that just keep this side, just keeps on getting hit, you know?
Allen H: Well, I, I guess the question is from my side, Yolanda, is obviously inflation, when this project started was pretty consistent, like one point half, 2%. It was very flat for a long time. And interest rates, if you remember when this project started, were very, very low. Almost [00:19:00] nonexistent, some interest rates.
Now that’s hugely different. How does a contract get set up where a vineyard can’t raise prices? It would just seem to me like you would have to tie some of the price increase to whatever the inflation rate is for the country, maybe even locally, so that if there were a, a war in Ukraine or some conflict in the Middle East.
That you, you would at least be able to, to generate some revenue out of this project because at some point it becomes untenable, right? You just can’t afford to operate it anymore. And,
Yolanda Padron: and I think, um, I, I haven’t, I obviously haven’t read the, the contracts themselves, but I know that there’s sometimes there, it’s pretty common for a PPA to have some sort of step up year by year.
And it’s usually, it can be tied to, um, the CPI for. Like the, the change in CPI for the year to year. So you’re [00:20:00] absolutely like, right, like maybe, I mean, hopefully they’re, they’re not just tied to the fixed 69 bucks per megawatt hour. Um, but, but yeah, to, to your point like that, that price increase could, could really save them.
Now that we’re, we’re talking the, the increase in, in inflation right now and foreseeable future,
Allen H: if you think about what electricity rates are up in the northeast. I think I was paying 30 cents a kilowatt hour, which is 300. Does that sound right? $300 a megawatt hour. Delivered at the house, something like that.
Right? So
Yolanda Padron: prices in the northeast are crazy to me,
Allen H: right? They’re like double what they are in North Carolina. Yeah.
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Yolanda Padron: you millions.
Allen H: Well, sometimes building a wind farm turns out more than expected construction workers at a 19 turbine wind project in lower Saxony Germany under Earth. What experts call the largest Bronze age Amber Horde ever found? The region, the very first scoop of an excavator brought up bronze and amber artifacts that stopped construction and brought archeologists back to the site.
Uh, the hoard has been dated between [00:22:00] 1500 and 1300 DCE and is believed to have belonged to at least three. Status women possibly buried as a religious offering. Now as we push further and further across Germany with wind turbines and solar panels for, for that matter, uh, we’re coming across older sites, uh, older pieces of ground that haven’t been touched in a long time and we’re, we’re gonna find more and more, uh, historically significant things buried in the soil.
What is the obligation? Of the constructor of this project and maybe across Europe. I, I would assume in the United States too, if we came across something that old and America’s just not that old to, to have anything of, of that kind of, um, maybe value or historically significant. What is the process here?
Rosemary Barnes: I assume that they’ve gotta stop, stop work. Um, yeah, that’s my, my understanding and I don’t think, do you have [00:23:00] grand designs in America?
Allen H: I don’t know what that is. Yes.
Rosemary Barnes: So missing out by not having that chat. It’s a TV show about people who are building houses or doing, um, ambitious renovations, and it just, it follows, it follows them.
You can learn a lot about project management or. The consequences if you decide that you don’t need to, project management isn’t a thing that you need to do. Um, anyway. I’m sure that in some of those ones I’ve seen they have had work stop because in their excavation they found a, um, yeah, some, some kind of relic, um, from the, from the past.
So based on that very well-credentialed experience that I have, I can confidently say that they would be stopping stopping work on that site. I mean, it’s so bad, bad for the developer, I guess, but it’s cool, right? That they’re, you know, uncovering, uh, new archeology and we can learn more about, you know, people that lived thousands of years ago.
Allen H: It, it does seem [00:24:00] like, obviously. Do push into places where humans have lived for thousands of years. We’re going to stumble across these things. Does that mean from a project standpoint, there’s, there’s some sort of financial consequence, like does the lower Saxony government contribute to the wind turbine fund to to pay the workers for a while?
’cause it seems like if they’re gonna do an archeological dig. That that’s gonna take months at a minimum, may, maybe not, but it usually, having watched these things go on it, it’s. It’s long.
Rosemary Barnes: But wouldn’t that be something that you’d have insurance for?
Allen H: Oh, maybe that’s it.
Rosemary Barnes: You know, it seems to me like an insurable, an insurable thing, like not so hard to, it would’ve affected plenty of other, like any project that involves excavation in Europe would come with a risk of, um, finding Yeah.
An archeological find. And having work stopped, I would assume.
Allen H: Yolanda, how does that work in the United States do, is there some insurance policy towards finding [00:25:00] a. Ancient burial ground and what happens to your project?
Yolanda Padron: I don’t know. I, um, the most I’ve heard has been, it’s just talking to like the government and like the local government and making sure that you have all your permits in place and making sure, you know, you might need to, to have certain studies so you know, you might not have to get rid of the whole wind farm or remove the hole wind farm, but at least a section.
Of it has to be displaced from what you originally had thought. I don’t know. I know it happens a lot in Mexico where you get a lot of changes to construction plans because you find historical artifacts or obviously not everybody does this, but like. Tales of construction workers who will like, find, they’re so jaded from finding historical artifacts that they just kind of like take and then dump them to the next plot over to not deal with it right now.
Not that it’s anything ethical, uh, or done by everybody, [00:26:00] uh, but it’s, but, but it’s a common occurrence, a relatively common occurrence.
Allen H: You would think it where a lot of wind turbines are in the United States, which is mostly Texas and kind of that. Midwest, uh, wind corridor that they would’ve stumbled across something somewhere.
But I did just a quick search. I really hadn’t found anything that there wasn’t like a Native American burial ground or something of that sort, which they previously knew. For the most part. It’s, so, it’s rare that, that you find something significant besides, well, maybe used some woolly mammoths tusks or something of that sort.
Uh, in the Midwest, it’s, it’s, so, it’s an odd thing, but is there a. A finder’s fee? Like do does the wind company get to take some of the proceeds of, of this? Trove of jewelry.
Rosemary Barnes: I, I would be highly surprised.
Allen H: Well, how does that work then? Rosemary?
Rosemary Barnes: I’d be highly surprised if that’s the case in Europe. I bet it would happen like that in America.
Allen H: Sounds like pirate bounty in a sense.
Rosemary Barnes: In, in Australia it wouldn’t be like that because [00:27:00]you, when you own land, you don’t actually. You, you own the right to do things from surface level and above, basically. I don’t know how excavation works. So you don’t generally have a a right to anything you find like that?
I mean, you shouldn’t either. It’s not, it’s not yours. It’s a, it belongs to the, I don’t know, the people that, that were buried. When you then to the, the land, like, I guess. The government in some way. I mean, in Australia it’s, um, like we don’t have so many archeological fines that you would find from digging.
I mean, it’s not that there’s none, but there’s not so many like that. But it is pretty common that, you know, there are special trees, um, you know, some old trees that predate, uh, white people arriving in Australia. And, um, you know, that have been used for, you know, like it might have a, a shield that’s been, um.
Carved out of it. Or, uh, hunting. Hunting things, ceremonial things, baskets, canoes, canoe like things, stuff like that. They call ’em a scar [00:28:00] tree ’cause they would cut it out of a living, living tree. And you know, so when you see a tree with those scars and that’s got, um, cultural significance. There’s also, you know, just trees that were, um.
That that was significant for cultural reasons and so you wouldn’t be able to cut down those trees if you were building any, doing any kind of development in Australia and a wind farm would be no different. I know that they are, there are guidelines for, if you do come across any kind of thing like that or you find any anything of cultural significance, then you have to report it and hopefully you don’t just move it onto the neighboring property.
Allen H: I know one of the things about watching, um. Some crazy Canadian shows is that. Uh, you have to have a Treasure Hunter’s license in Canada. So if you’re involved in that process, like you can’t dig, you can’t shovel things, only certain people can shovel. ’cause if they were to find something of value, you.
You’ll get taxed on it. So there’s just a lot of rules [00:29:00] about it. Even in Canada,
Rosemary Barnes: if I was an indigenous Australian and you know, some Europe person of European descent came and found some artifacts, uh, aboriginal. Artifacts. I would be pissed if they just took it and sold it. Like that’s just clearly inappropriate right.
To, to do that. So you, I don’t think it should be a free for all. If you find artifacts of cultural significance and you just, it’s, you find its keepers that, that doesn’t sound right to me at all.
Allen H: Can we talk about King Charles II’s visit to the United States for a brief moment?
Uh, he is a really good ambassador, just like, uh, the queen was forever. He’s, he does take it very seriously and the way that he interacted with the US delegation was remarkable at times in, in terms of knowing how to deal with somebody that there’s a war going on right now. So there’s a lot [00:30:00] happening in the United States that, uh, not only could it be.
Uh, respecting both sides of the UK and the United States’ position in a, in a number of different areas, but at the same time being humorous, trying to build bridges. Uh, king Charles, uh, had the scotch whiskey tariffs removed just by negotiating with President Trump, and sometimes that’s what it takes.
It’s a little bit of, uh. Being a good ambassador.
Allen H: Yeah. The very polished you would expect that. Right? But this is the first visit of. The king to the United States, I believe. ’cause he, he’s been obviously as a prince many, many, many times to the United States. [00:31:00]But this time as, as a, the representative of the country, the former representative or head of the country, which was unique.
I think he did a really good job. And I wish he, they would’ve talked about offshore wind. Maybe he could’ve calmed down the administration on offshore wind.
Rosemary Barnes: I bet that’s one of the, the goals. I mean, that’s an industry that’s important to. So
Allen H: I wonder if that happened actually. ’cause that’s not gonna be reported in, in the news, but how the UK is going on its own way in terms of electrification and I guarantee offshore wind had to come up it.
Although I have been not seen any article about it, I, I find it hard to believe that King Charles being the environmentalist that he is, and a proponent of offshore wind for a long time. Didn’t bring it up and try to mend some fences.
Rosemary Barnes: Maybe he’s playing the long game though. I mean, Trump is pretty, he’s transactional, but he also, you know, he has people that he really likes and you know, will act in their interests.
So maybe it’s enough to just be [00:32:00] really liked by Trump, and then that’s the smartest way you can go about it.
Allen H: Did you see the gift that King Charles presented to, uh, the US this past week?
It was a be from, uh, world War II submarine, which was the British, I dunno what the British called their submarines, but it was, the name of it was Trump. So they had the bell from. The submarine when it had been commissioned and they, they gave that to the United States, or give to the president. It goes to the United States.
The president doesn’t get to keep those things, but it was such a smart, it’s a great president. It’s such a smart gift, and somebody had to think about it and the king had to deliver it in a way that got rid of all the noise between the United States and the uk. Brought it back to, Hey, we have a lot in common [00:33:00] here.
We shouldn’t be bickering as much as we are. And I thought that was a really smart, tactful, sensible way to try to men some fences. That was really good. That wraps up another episode of the Uptime Wind Energy Podcast. If today’s discussion sparked any questions or ideas, we’d love to hear from you. Reach out to us on LinkedIn.
Don’t forget to subscribe, so you never miss this episode. And if you found value in today’s conversation, please leave us a review. It really helps other wind energy professionals discover the show. For Rosie and Yolanda, I’m Allen Hall and we with. See you’re here next week on the Uptime Wind Energy Podcast.
Renewable Energy
America Is a Gun
I’ve enjoyed quite a few works from the poet whose work appears at left, but this one speaks to me most clearly.
Money means everything, and the value we put on the lives of our children pale in comparison.
Renewable Energy
Bizarre Moments in Western Philosophy
Schopenhauer’s pessimism is essentially everything he left us, and his quote here is representative of that.
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