ENERGY: Coal for electricity: important and dirty

Coal is used to generate more than 50% of our electricity needs in the US and President Bush made coal the centerpiece of his plan for meeting future energy needs. The US has over 200 years of reserves. But in the increased threat of regulation, the lack of adequate transportation from source to customers, and increased worldwide demand have made the future of coal-fired plants in their current incarnation less certain in recent years.

These three factors (regulation, transportation, and demand) have led companies to cancel over 50 new US coal-fired plants in 2007 because: 1) regulations for increased use of renewable energy by utilities and for carbon emissions limits will almost surely be enacted in Washington in the next few years; 2) our transportation infrastructure requires considerable upgrade to economically deliver coal to market; and 3) increased coal consumption by countries like India and China has caused world prices to rise which increases the cost of coal-fired plants (the coal production and consumption graph is courtesy of the BP statistical review of world energy 2007).

US electricity costs are rising and will continue to do so in this environment.

Based on the assumption that carbon emissions control legislation will be passed in the next few years, the Electric Power Research Institute (EPRI) estimates coal power costs will pass nuclear and natural gas by 2030. The most likely legislation will require plants to collect and sequester CO2, and we will discuss more about this technology soon.

The EPRI uses a bathtub analogy for our energy policy discussion: the carbon dioxide faucet (emissions) has to be slowed enough to allow the drain (renewable energies brought online) to keep the tub from overflowing (climate change). The coal industry will have plenty to say about that whether they're selling here in the US or across the developing world.

More renwable energy news soon.


(classic Bacsik)