The perverse effort of some “free market” and “classical liberal” intellectuals to promote centrally planned electricity markets at wholesale (thus indirectly at retail) is a very curious example in the history of energy thought. Lynne Kiesling and Michael Giberson (see yesterday) are the guilty.
In AI and Economic Calculation (Substack), Kiesling explains the basics of the central planning debate but ducks the elephant in her room, the centrally planned wholesale power market.
I have emphasized to Lynne Don Lavoie’s critique of noncomprehensive planning that went alongside his work on comprehensive planning, challenging her to forthrightly apply his argument to her beloved mandatory open access/Independent System Operator/Regional Transmission Organization (MOA/ISO/RTO) framework. The “knowledge problem” she champions reflects badly from her own mirror, if she would only see (impartial observer needed).…
Continue Reading“Giberson and Kiesling are all in with the Biden Agenda of the Production Tax Credit for industrial wind; the Investment Tax Credit for solar; pricing CO2, even if that means international ‘border adjustments.’ Two ‘classical liberals’ accepting rather than debating/criticizing climate alarmism and forced energy transformation? They should explain themselves rather than dodge, deflect, pretend.”
He steadfastly refuses to define what a free market is in electricity–and what the end state is for a classical liberal. Bonded with Lynne Kiesling, another pretend classical liberal when it comes to electricity, Michael Giberson can only claim to try to make the politicalized system better. And that is getting harder and harder to do.
Here is my latest exchange with Giberson on social media where he makes a specious argument that a regulated gasoline market at wholesale is analogous to a centrally planned electricity market.…
Continue Reading“Wind and solar pose inherent problems; especially to the ultra-high electric energy ‘purity’ requirements of AI/data centers. Data centers and AI generally require nine-nines reliability and quality metrics such as voltage, frequency, harmonics, etc.”
Several recent articles have highlighted that artificial intelligence (AI) and data centers are increasing electricity usage, creating concern about adequate supply and its effect on local communities. These articles include:
The nation’s 2,700 data centers sapped more than 4 percent of the country’s total electricity in 2022, according to the International Energy Agency. Its projections show that by 2026, they will consume 6 percent.
… Continue ReadingWhile the hyperscalers typically need 10-14kW per rack in existing data centers, this is likely to rise to 40-60kW for AI-ready racks equipped with resource-hungry GPUs.