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2019-06-06 14:50:00

U.S. COAL IS CHEAPER

U.S. COAL IS CHEAPER

WORLD COAL - On 3 June, America's Power, in conjunction with the Institute for Energy Research (IER) released a study that analyses and compares the levelised cost of electricity (LCOE) for new and existing sources of electricity.

The levelised cost of electricity (LCOE) includes all of the costs (variable and fixed operating and maintenance expenses, capital investments and financing costs) of an electricity source over its lifetime and is a useful way to compare existing power plants to new facilities. The new analysis finds that, on average, the levelised cost of electricity from the coal fleet is less than the levelised cost of new natural gas combined cycle (NGCC), new wind and new solar.

America's Power issued the following statement by Michelle Bloodworth, President and CEO: "This new study is unique because it provides an apples-to-apples comparison of existing and new electricity sources," said Bloodworth. "The study shows that policymakers should carefully consider levelised costs when decisions are being made to retire coal-fired power plants because replacing them with gas, wind or solar could be a bad economic decision."

Tom Pyle, President of the Institute for Energy Research, also noted: "This study illustrates why foolish policies like the Green New Deal and 100% renewable mandates would harm our economy and significantly raise the cost of electricity for American households. Shifting our electricity generation away from existing affordable and reliable plants to expensive and intermittent wind and solar would substantially increase energy costs for businesses and families. This study provides a necessary reality check for anyone making decisions about America's electricity policy."

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Tags: COAL, ENERGY, POWER