Wednesday, 13 September 2017

coal and peak power

I am constantly bemused by people who claim that only a new coal fired electricity plant can deliver lower power prices. This is of course badly wrong. coal is more expensive than either solar or wind. more over technology means solar and wind prices are continually to fall whereas coal continues to stay high and this is without a price on carbon to cover the externalties it generates.

Alan Pears writes a very informative article on all this. As a bonus the latest from the ever excellent Grattan Institute on the electricity market.

I should have said something about the government's tactics. It is very short term They hope to convince voters that coal is the answer to lower power prices. This would obviously blow up when power prices do not fall. It seems 'right wing' government MPs believe the Finkel report is incorrect and coal is the way to go. although they claim to believe in markers they reject what the markets are now saying about NEW coal plants. No-one has proposed one and no-one wants to finance one.