A study evaluates the economics of geothermal hybrid power plants, showcasing their potential to overcome challenges in the energy market. Plus, tourism at Big Bend National Park fuels the regional economy, and Andrew Ackerman joins Simply Economics to cover the Federal Reserve and financial regulatory policy. Also, can Mario Draghi's plan spark Europe's struggling economy back to life?
Sources:
https://www.thinkgeoenergy.com/study-evaluates-the-economics-of-geothermal-hybrid-power-plants/
https://www.newswest9.com/article/money/economy/tourism-big-bend-national-park-economic-boom-regional-economy/513-98d0973d-34f3-4498-a9b8-1da6dae466f7
https://www.washingtonpost.com/pr/2024/09/09/andrew-ackerman-joins-posts-economics-desk-cover-federal-reserve-financial-regulatory-policy/
https://www.economist.com/finance-and-economics/2024/09/09/can-anything-spark-europes-economy-back-to-life
Outline:
(00:00:00) Introduction
(00:00:44) Study evaluates the economics of geothermal hybrid power plants
(00:03:11) Tourism at Big Bend National Park an economic boom for regional economy
(00:05:49) Andrew Ackerman joins The Post’s Economics desk to cover the Federal Reserve and financial regulatory policy
(00:07:56) Can anything spark Europe’s economy back to life?
Simply Economics
Geothermal Hybrid Power Plants: Unlocking the Potential of Renewable Energy
A study evaluates the economics of geothermal hybrid power plants, showcasing their potential to overcome challenges in the energy market. Plus, tourism at Big Bend National Park fuels the regional economy, and Andrew Ackerman joins Simply Economics to cover the Federal Reserve and financial regulatory policy. Also, can Mario Draghi's plan spark Europe's struggling economy back to life?Sources:https://www.thinkgeoenergy.com/study-evaluates-the-economics-of-geothermal-hybrid-power-plants/https://www.newswest9.com/article/money/economy/tourism-big-bend-national-park-economic-boom-regional-economy/513-98d0973d-34f3-4498-a9b8-1da6dae466f7https://www.washingtonpost.com/pr/2024/09/09/andrew-ackerman-joins-posts-economics-desk-cover-federal-reserve-financial-regulatory-policy/https://www.economist.com/finance-and-economics/2024/09/09/can-anything-spark-europes-economy-back-to-lifeOutline:(00:00:00) Introduction(00:00:44) Study evaluates the economics of geothermal hybrid power plants(00:03:11) Tourism at Big Bend National Park an economic boom for regional economy(00:05:49) Andrew Ackerman joins The Post’s Economics desk to cover the Federal Reserve and financial regulatory policy(00:07:56) Can anything spark Europe’s economy back to life?
- Duration:
- 10m
- Broadcast on:
- 10 Sep 2024
- Audio Format:
- mp3
Good morning, and welcome to Simply Economics. It's Tuesday, September 10th. On today's show, a study evaluates the economics of geothermal hybrid power plants, and tourism at Big Ben National Park proves to be an economic boom for the regional economy. Plus, Andrew Ackerman joins the post's economics desk to cover the Federal Reserve and Financial Regulatory Policy. This coverage and more, up next. I'm David, and you're listening to Simply Economics. We start off with a new study by researchers at the National Renewable Energy Laboratory and Idaho National Laboratory that evaluates the economics and technical feasibility of hybrid geothermal power plants. The study looks at scenarios combining geothermal with natural gas, as well as a triple hybrid plant that adds solar thermal and thermal energy storage to the mix. For more, we're joined by our correspondent. What did the researchers find in terms of the economic viability of these hybrid geothermal approaches? The study found that under certain conditions, hybrid geothermal plants that incorporate solar thermal, thermal storage, or natural gas can be economically competitive with other power generation technologies. By combining multiple energy sources, these hybrid plants are able to leverage the efficiency and flexibility advantages of each technology. For example, adding solar thermal to a geothermal plant allows the solar energy to boost the geothermal brine temperature, increasing the efficiency of power generation. So thermal storage then provides dispatchability, so the plant can provide power on demand. And what about the geothermal natural gas hybrid scenario? How does that compare from an economic perspective? The researchers found that a geothermal natural gas hybrid plant, where the natural gas is used to superheat the geothermal brine, can also be cost competitive under the right conditions. The added efficiency and power output from the natural gas heat source helps offset the fuel costs. However, this hybrid configuration still has some greenhouse gas emissions, although much lower than a pure natural gas plant. Do these hybrid approaches help address some of the challenges with geothermal in terms of high upfront costs and limited geographical availability of the resource? To some extent, yes. By combining geothermal with other energy sources, developers can potentially make geothermal projects economically viable in more locations. The solar and thermal storage components in particular are more geographically flexible. However, the study did focus specifically on green field scenarios, meaning new developments. More research is still needed on applying these hybrid solutions to existing geothermal plants, but this study provides a useful techno-economic framework for evaluating different hybrid geothermal configurations. It's interesting findings on the potential of hybrid geothermal solutions with economics playing a key role in their deployment. Thank you to our correspondent for walking us through the key points of this new study. Shifting our focus to another area of economic impact, Big Ben National Park in West Texas is celebrating its 80th anniversary this year, and the park continues to be a major economic driver for the region. In 2023 alone, Big Ben brought in over $56 million in tourism revenue. Here with more details as our correspondent, can you tell us what makes Big Ben such a popular destination? Big Ben attracts visitors from all over the world who come to experience its timeless beauty and unique desert environment. The park is especially popular in the winter months with travelers from colder climates like Canada and Europe seeking to soak up the West Texas sun. Over 500,000 people now visit the park each year, with the majority coming from other parts of Texas. The remote location of Big Ben means that visitors typically spend several days exploring the region which provides a significant boost to the local economy. How exactly does the park impact the surrounding communities economically? What kind of businesses and services benefit from the influx of tourists? The tourism driven by Big Ben supports a wide range of businesses in the area. Visitors need lodging, restaurants and other services during their stay, so the economic benefits extend well beyond the park itself. Local Outfitters also profit by offering guided river trips, jeep tours and other outdoor activities to park visitors. With each tourist that comes to experience Big Bend, more money is pumped into the local economy through spending on necessities like gas, food and accommodations. With the park now entering its ninth decade and visitorship continuing to grow, what steps are being taken to ensure Big Bend can sustainably manage this increasing popularity into the future? Park officials recognize the need for infrastructure upgrades to keep Big Bend in top shape for generations to come. Major projects are underway including a complete rebuilding of the Cheesos Mountains Lodge, restaurant and store facilities. Additionally, the park is replacing all of the old waterlines that run throughout the entire park. These investments, totalling in the millions, are critical for the long-term sustainability of visitation in the delicate desert environment of Big Bend. The future certainly looks bright for Big Bend as it celebrates 80 years as a crown jewel of the National Park System and an economic powerhouse for West Texas. The ongoing infrastructure improvements funded by strong visitor revenues will help ensure many more decades of success for the park and the gateway communities that rely on the tourist dollars it brings in. Speaking of economics, the Washington Post has announced a new hire for their economics team. Andrew Van Dam, formerly of the Wall Street Journal, will be joining the post to lead coverage of financial regulation and the Federal Reserve. Here with more details is our simply economics correspondent. So what can you tell us about Andrew Van Dam's background and what he brings to the Washington Post? Andrew Van Dam established himself as a top-notch financial journalist during his time at the Wall Street Journal. He broke several major stories including Equifax sending incorrect credit information to lenders about millions of consumers and a new regulatory probe into the close relationship between large asset managers and U.S. banks. Van Dam was also part of the journal team that won a Best in Business award for their breaking news coverage of the 2023 banking crisis. His expertise in financial regulation will be a valuable asset to the Washington Post. And it sounds like Van Dam will be stepping into this role at a particularly pivotal time for the U.S. economy and the Federal Reserve. What can you tell us about that? That's right. The Federal Reserve is expected to begin cutting interest rates this fall in an effort to stave off a potential recession. This will be a major shift in monetary policy after a prolonged period of rate hikes. As the Fed embarks on this new trajectory, Van Dam will be on the front lines explaining to Washington Post readers what these rate cuts could mean for the housing market, financial markets, and their everyday lives. His coverage will provide crucial insights into the evolving economic landscape. The Washington Post seems to be positioning itself well by bringing on seasoned financial journalist Andrew Van Dam. And speaking of economic news, Europe's economy has been struggling with growth for some time now. But a new report by former European central bank president Mario Draghi outlines a plan to overhaul the continent's economy. The nearly 400-page report has caught the attention of EU leaders and even tech moguls like Elon Musk. For more on this, we turn to our economics correspondent. So what are some of the key points in Draghi's report? The report lays out a comprehensive plan to boost Europe's economic growth and competitiveness. One of the main focuses is on increasing investment in key areas like digital infrastructure, green technology, and research and development. Draghi argues that Europe needs to catch up to other major economies like the U.S. and China when it comes to innovation and productivity. And how does he propose to fund these investments? Draghi calls for a combination of public and private investment as well as reforms to make it easier for businesses to access capital. He also suggests that the EU should consider issuing joint debt to finance some of these projects similar to the recovery fund that was created in response to the COVID-19 pandemic. That's a controversial idea given the resistance of some member states to taking on more debt. What other reforms does Draghi recommend? The report also calls for reforms to Europe's labor markets and education systems to better prepare workers for the jobs of the future. Draghi argues that Europe needs to be more flexible and adaptable in order to compete in a rapidly changing global economy. He also emphasizes the importance of completing the EU's single market, particularly in areas like digital services and energy. It's an ambitious plan, but will EU leaders actually implement it? That remains to be seen. European Commission President Ursula von der Leyen has expressed support for many of Draghi's ideas, but getting all 27 member states on board will be a challenge. There are also questions about how much appetite there is for more EU-level action given the recent rise of populist and nationalist movements in some countries. The fact that such a high-profile figure like Draghi is putting forward this plan suggests a growing sense of urgency around Europe's economic challenges, especially with the continent facing increasing competition from the US and China, as well as the ongoing impacts of the pandemic and the war in Ukraine. The pressure is on for EU leaders to take bold action to secure Europe's economic future. And on that note, we wrap up our stories for today. Thanks for listening to Simply Economics. We'll see you back here tomorrow. [MUSIC] [BLANK_AUDIO]