Everyone knows coal plants are bad for the environment. So why do countries still use them? Coal’s attractiveness comes from the relatively low up front capital investment required to start generating energy. On top of that, the rapid rise of variable renewables (solar, wind) need something to rise with it to fill the generation gap when the sun doesn’t shine and the wind doesn’t blow. In his final instalment - after his similarly detailed … [Read more...]
Investing in gas: the effect of carbon taxes, gas prices, and the growth of renewables
Schalk Cloete presents his latest article looking at what affects the profitability of an investment in a specific power sector. After reviewing onshore wind, nuclear and solar, he now looks at gas. His analysis of coal is to come. The major variables are increasing CO2 prices, and natural gas pricing. He adds that the growth of wind and solar should benefit load-following gas power plants: they are plugging the intermittency gap when electricity … [Read more...]
