Old Rocks
Diamond Member
Why the Death of Coal in America Is Saving You Money - DailyFinance
What is surprising is that the rate at which electricity prices have increased has actually slowed at the same time as coal plants are being shut down. Between 2001 and 2008, when coal usage was still growing, the price of electricity increased 4.2 percent a year in the U.S. In the six years since, electricity prices have increased just 1.2 percent a year.
Source: U.S. Energy Information Administration
That's partly due to the falling cost of natural gas and partly because wind and solar energy are now lower-cost than coal or natural gas. Investment bank Lazard issues ban annual report called Lazard's Levelized Cost of Energy Analysis that analyzes the cost to build new power plants, and coal at 6.6-15.1 cents per kWh is now more expensive than wind at 1.4-6.7 cents per kWh and even utility solar at 5.6-8.6 cents per kWh.
Regulations that make pollution from coal more expensive might be putting coal at a disadvantage, but alternatives to coal are winning on more than the pollution front. According to Lazard, wind and solar are actually lower-cost than coal was in 2009 (5.7 to 14.4 cents per kWh), before many current EPA regulations were put in place. So, cost is driving the drop in coal and growth in wind and solar energy.
So much for all the silly flap-yap here concerning the renewables increasing the price of energy.
What is surprising is that the rate at which electricity prices have increased has actually slowed at the same time as coal plants are being shut down. Between 2001 and 2008, when coal usage was still growing, the price of electricity increased 4.2 percent a year in the U.S. In the six years since, electricity prices have increased just 1.2 percent a year.
Source: U.S. Energy Information Administration
That's partly due to the falling cost of natural gas and partly because wind and solar energy are now lower-cost than coal or natural gas. Investment bank Lazard issues ban annual report called Lazard's Levelized Cost of Energy Analysis that analyzes the cost to build new power plants, and coal at 6.6-15.1 cents per kWh is now more expensive than wind at 1.4-6.7 cents per kWh and even utility solar at 5.6-8.6 cents per kWh.
Regulations that make pollution from coal more expensive might be putting coal at a disadvantage, but alternatives to coal are winning on more than the pollution front. According to Lazard, wind and solar are actually lower-cost than coal was in 2009 (5.7 to 14.4 cents per kWh), before many current EPA regulations were put in place. So, cost is driving the drop in coal and growth in wind and solar energy.
So much for all the silly flap-yap here concerning the renewables increasing the price of energy.