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Tesla’s solar vision gets its first big test in Puerto Rico

It was a transaction concocted on Twitter — and in a few short weeks, declared official: Tesla is helping to bring power back to Puerto Rico.

Early this month, Elon Musk touted his company’s work building solar-plus-battery systems for small islands like Kauai in Hawaii and Ta’u in American Samoa. He suggested a similar setup could work for Puerto Rico. The U.S. territory’s governor, Ricardo Rosselló, tweeted that he was game. Musk replied quickly: “Hopefully, Tesla can be helpful.”

After earlier reports of the company’s batteries arriving at San Juan’s port, Tesla announced today that it has started constructing its first microgrid installation, laying out a solar field and setting up its refrigerator-sized Powerpack batteries to supply electricity to a children’s hospital in the Puerto Rican capital.

More than a month after Hurricane Maria destroyed swaths of the island’s electrical grid, 85 percent of Puerto Rico is still without power. Total grid repair costs are estimated at $5 billion — an especially steep price for a public utility already $9 billion in debt. The lack of power is especially dire for hospitals, where unreliable electricity may spoil medicines that require refrigeration and complicate crucial medical procedures. The results could be deadlier than the storm itself, but solar power could help head off further disaster.

The idea that solar could serve as a viable source of emergency relief is new. Sure, renewable technologies have proliferated and become more affordable, but there’s a tried-and-true response to natural disasters: Fall back on diesel generators and fuel until utilities have a chance to restore grid power.

This has largely been the pattern in post-Maria Puerto Rico. One hardware store told the New York Times it was selling up to 300 generators a day. FEMA claims it has installed more generators in Puerto Rico than in hurricane-ravaged parts of Texas and Florida combined. But generators are expensive, inefficient, and prone to failure. And burning diesel in homes comes with health risks like carbon monoxide poisoning.

By contrast, a microgrid setup — that is, a combination of solar panels, battery storage, and electrical inverters that doesn’t require input from the main power grid — can potentially take immediate effect, providing reliable electricity with no pollution. And, once installed, these self-contained systems could help eliminate the rolling blackouts that were a problem for Puerto Rico’s major utility even before Maria.

Tesla is only the most prominent company to bypass the conventional avenues of rebuilding to install renewable power and batteries. Other companies and nonprofits have been marshalling resources to fill the void left by federal relief efforts. German renewable energy outfit Sonnen has pledged to build microgrids in priority areas, working with local partner Pura Energia to install donated batteries to power first aid and community centers. Another group, Resilient Power Puerto Rico, is distributing solar generators to remote communities, where they can serve as hubs for immediate necessities like charging phones and filtering water.

Marco Krapels, founder of the nonprofit Empowered by Light, traveled with a solar installation team to Puerto Rico in early October to deploy solar-plus-battery microgrid systems on fire stations. The nonprofit partnered with local firefighters to quickly cut through red tape paralyzing much of the disaster response.

“It takes only 48 hours to deploy once it arrives in the San Juan airport,” Krapels says of the standalone systems. “The firefighters, who have 18 flat-bed trucks, pulled up to our cargo plane; three hours later we were installing the system; and 48 hours later we’re done.”

The microgrid systems provide electricity and communications to the fire stations, as well as water purification technology that can provide up to 250 gallons of drinkable water a day — crucial on an island where 1 in 3 residents currently lack access to clean water.

There are 95 fire stations in Puerto Rico, Krapels says, and he estimates it will take just under $5 million for Empowered by Light to outfit them all. So far, the nonprofit has transformed two stations, one in the low-income Obrero neighborhood of San Juan and one in the town of Utuado, in the remote center of the island. After both installations, Krapels says, the local fire station was the only building with the lights on after dark — outlying and underserved communities are always among the last to receive emergency relief.

“There are parts of the island that are so destroyed that there is no grid,” Krapels says. “There is nothing to fix: The transformers are all burnt, the poles are gone, the wires are laying on the street.”

As much as 80 percent of the island’s high-power transmission lines were destroyed, Bloomberg reported, and even optimistic estimates of repair work have a majority of the island off the grid until late this year.

In the coming months, as communities and companies work to rebuild that infrastructure, there will be an opportunity to make the island more resilient. Companies like Tesla offer one path to less vulnerable electricity infrastructure. Meanwhile, organizations like Resilient Power Puerto Rico emphasize the importance of economic resilience, too. The New York-based founders want to put power in the hands of the island’s residents, modeled after similar efforts in the Rockaways post-Sandy. The nonprofit has ambitions to establish 100 solar towns, a robust green economy, and more electrical independence for all.

“If we’re going to rethink energy in Puerto Rico, let’s really empower people to deploy their own distributed renewable generation and storage,” Krapels says. “The sun is there every day, and it’s going to shine for the next 5 billion years.”

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Tesla’s solar vision gets its first big test in Puerto Rico

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How Much Is 1.6 Months of Life Worth?

Mother Jones

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From Carolyn Johnson at Wonkblog:

With some cancer drug prices soaring past $10,000 a month….

Hey, that’s me! A friendly FedEx delivery person just delivered this month’s $10,000 supply to me an hour ago. So, what’s up?

With some cancer drug prices soaring past $10,000 a month, doctors have begun to ask one nagging question: Do drug prices correctly reflect the value they bring to patients by extending or improving their lives?

A study published Thursday in JAMA Oncology aims to answer that question by examining necitumumab, an experimental lung cancer drug….in a clinical trial, researchers found that adding the drug to chemotherapy extended life by 1.6 months, on average.

….In order to estimate what the price of this drug “should” be based on its value to patients, the research team modeled various scenarios….one additional year in perfect health in the U.S. is worth somewhere between $50,000 and $200,000….Based on their calculations, the drug should cost from $563 to $1,309 for a three-week cycle.

….There are many variables that go into the price of a drug, but mounting evidence suggests that the value it brings to patients is not the biggest factor. “How they price the drug is they price it at whatever the market is willing to bear,” said Benjamn Djulbegovic, an oncologist at the University of South Florida.

Well, sure, but this raises the question of why the market is willing to bear such high prices. Why would an insurance company approve a large expenditure for a drug that has only a tiny benefit?

There’s a lot that goes into this. Obviously some people benefit from necitumumab by a lot more than 1.6 months—and there’s no way to tell beforehand who will and who won’t. And it costs a lot to develop these drugs. And patients put a lot of pressure on insurers to cover anything that might help. And, in the end, insurance companies don’t have a ton of incentive to push back: if drug prices go up, they increase their premiums. It doesn’t really affect their bottom line much.

There’s also the size of the total market to consider. The chemo drug I’m currently taking, for example, is only used for two conditions. There’s just not a whole lot of us using it. In cases like that, a drug is going to be pretty expensive.

But here’s something I’m curious about: who puts more pressure on insurance companies to cover expensive drugs, patients or doctors? My doctor, for example, was totally gung-ho about my current med. I was much less so after I read some of the clinical studies online. Why? Because most chemo drugs have unpleasant side effects (though mine has turned out OK so far), which means that, like many patients, I’m reluctant to take them unless the benefit is pretty clear cut. Doctors, on the other hand, just want to do whatever they can to help, and have no particular incentive to hold back. So maybe it’s doctors who need to be in the forefront of pushing back on expensive drugs. They’re the ones in the doctor-patient relationship who know the most, after all.

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How Much Is 1.6 Months of Life Worth?

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