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2011年5月15日星期日

Green Column: Hydropower’s Resurgence and the Controversy Around It

AUSTIN, TEXAS — Hydropower, a renewable energy source often overshadowed by excitement about wind and solar power, is enjoying something of a global resurgence.


Huge, controversial dam projects have recently made headlines in Brazil, Chile and Laos. Many developing countries, hungry for energy to supply their growing economies over the long term, are determined to keep building more modest-sized dams too.


Record amounts of hydropower capacity came online in 2008 and 2009, the most recent years for which data are available, according to Richard Taylor, executive director of the International Hydropower Association in London.


“There has been, over the last decade, a dramatic increase in the deployment of new hydropower capacity,” Mr. Taylor said.


The private sector, he added, has become more willing to provide financing for projects, which include not only the construction of new dams but also the modernizing of existing ones in places like Europe and the United States. The biggest new dams can cost billions of dollars.


But the renewed attention to hydropower, which accounts for about 16 percent of the global electricity mix, comes with environmental red flags. More attention than ever focuses on people who face displacement, as well as the effects of new dams on land and fish.


In Chile last week, demonstrators protested against a government plan to dam two rivers that wind through a wild, remote part of Patagonia. Last month, officials from Southeast Asian countries failed to reach an agreement about a proposed dam project on the Mekong River in Laos, amid concerns from Vietnam, Cambodia and Thailand about downstream implications.


An additional environmental issue — one that has caused mounting concern in recent years — is climate change. Changes in rain or snowfall patterns can drastically affect the amount of power a dam produces and also the amount of sediment flowing through the river.


Prolonged droughts are already taking their toll. Brazil, which gets about 80 percent of its electricity from hydropower, experienced a bad drought about a decade ago, and Chile has struggled with drought, too, according to Deborah Lynn Bleviss, a professor in the energy, resources and environment program at Johns Hopkins University’s School of Advanced International Studies in Washington.


A 2009 drought took a toll on countries including Guatemala, Venezuela, Argentina and Uruguay, as well as Brazil, she said.


“All have had impacts on hydropower capacity in these countries,” Ms. Bleviss said in an e-mail.


The region around Three Gorges Dam in China, the largest hydropower project in the world, is coping with a severe drought that has closed part of the Yangtze River to shipping, according to the state-run China Daily newspaper.


Small hydropower projects are especially vulnerable to climate change, according to Leandro Alves, who heads the energy division for the Inter-American Development Bank’s infrastructure and environment department, because they may not have enough reservoir storage capacity to compensate for decreased precipitation.


However, some dams may get more water, not less, as the climate changes. In a summary report on renewable energy released last week, the Intergovernmental Panel on Climate Change said that the effect of climate change would vary depending on a project’s location.


“For hydropower the overall impacts on the global potential is expected to be slightly positive,” the report states.


“However, results also indicate the possibility of substantial variations across regions and even within countries.”


In Norway, which gets nearly all of its electricity from dams, climate change on balance may benefit hydropower plants. “The studies have uncertain results, but the main result is that climate change on average will lead to more rain and thereby better production capability in Norwegian power plants,” said Tor Arnt Johnsen, who heads the analysis section of the Norwegian Water Resources and Energy Directorate, which is part of the Ministry for Oil and Energy, in an e-mail.


However, he noted, climate change is expected to lead to substantial weather variations. Thus, in especially dry and cold years, the dams are likely to produce less electricity, which could result in high electricity prices and the need to import power.


 

2011年5月3日星期二

DealBook: Buffett Eager to Move On After Sokol Controversy

“TranslatorService.LanguageService”的默认终结点元素。这可 Daniel Acker/Bloomberg NewsWarren E. Buffett, second from right, sits with his children, from left, Howard, Susie and Peter at the Berkshire Hathaway shareholder meeting in Omaha, Neb.

OMAHA — At the annual gathering of Berkshire Hathaway’s investors here this weekend, Warren E. Buffett made it clear that, as far as he is concerned, it’s back to business as usual. But a former top manager for him, David L. Sokol, may make that a difficult goal to accomplish.


Mr. Buffett said at a news conference on Sunday that while he viewed the controversy caused by Mr. Sokol’s abrupt departure a month ago as sad, he saw little reason to dwell on the matter for very long.


“I’ve got no strong feelings about it, except that it’s a very sad situation,” he said.


He said he planned no major changes to Berkshire’s management practices, which largely leave the executives of the company’s subsidiaries to operate as they please. With more than 260,000 employees working for him around the world, something can and will inevitably go wrong, Mr. Buffett said.


His longtime investing partner, Berkshire’s vice chairman, Charles Munger, addressed the issue more bluntly. “We’ve had a close brush with scandal two times in 50 years,” he said Sunday. “We’re not going to devote a lot of time to this.”


Nevertheless, Mr. Sokol appears ready to keep the issue alive and wage a fight against Berkshire and his onetime boss. In a statement issued after Berkshire’s annual meeting, Mr. Sokol’s lawyer insisted that Mr. Buffett was “transparently scapegoating” his client, and that Mr. Sokol had not violated company policy with those trades.


Mr. Buffett already used the annual meeting on Saturday, attended by tens of thousands of ardent investors from around the world, to speak at length about what he knew of Mr. Sokol’s stock purchases in a chemical maker that he later recommended to Mr. Buffett as a potential acquisition.


Berkshire announced in March that it would buy the chemical producer, Lubrizol, for $9 billion. The deal produced a $3 million paper profit for Mr. Sokol.


Mr. Buffett said Saturday that Mr. Sokol’s actions were “inexplicable and inexcusable,” though he declined to personally attack him. Mr. Buffett said that Mr. Sokol had violated company trading policy. In his statement, Mr. Sokol’s lawyer defiantly denied that claim, saying, “At no time did Mr. Sokol violate the law or any Berkshire policy.”


Mr. Buffett sought to parry those assertions on Sunday, arguing that he has been forthright in disclosing the relevant details of the matter. He said that he did not know of any other details relevant to an investigation, and that he was cooperating with regulators in their inquiries.


“The facts are the facts,” he said. “His lawyer wasn’t there. I know what happened.”


Since Berkshire disclosed Mr. Sokol’s resignation and its circumstances, the controversy has threatened to mar Mr. Buffett’s lustrous reputation among investors. But Mr. Buffett said he did not expect the affair to cause permanent damage.


The pressure on Mr. Sokol is likely to grow. The Securities and Exchange Commission is looking into his trades, according to people briefed on the matter, using in part information submitted by Berkshire. Mr. Buffett said on Saturday that the data his company had turned over was “pretty damning.”


Mr. Buffett spoke at greater length Sunday about more traditional topics of discussion for Berkshire meetings.


Asked by reporters from various countries — including Germany, Brazil and South Korea — about whether he would be interested in acquiring companies in those areas, he responded yes to all of them.


Asked again about a potential successor to him, Mr. Buffett said only that even the worst of the unnamed candidates would be “very, very good.”


Shareholders appeared to side largely with Mr. Buffett. At Berkshire’s meeting on Saturday, most seemed more concerned with potential investments and successors than with the Sokol matter.


“I trust Buffett and the board,” Mary Murphy, from Omaha, said on Sunday. “He seemed like he was being honest and saying what he knew.”