The Associated Press reported the other day that the price of coal has gone through the roof from $40 to $90 per ton in just the last year. The causes of this increase are many, from short term problems (like floods in major Australian mines), emerging competition for the resource from China and India, and long term problems having to do with increased demand. The take home message is that coal is getting more expensive, and that is causing the electricty providers to raise rates.
Therefore, it should come as no surprise that the states and utilities that rely most heavily on coal are being the hardest hit by this growing energy boondoggle. States like West Virginia that get more than 90% of their energy from coal saw their electricity rates rise twice as fast as the national average in 2007 (4.6% vs. 2.3%). Rate increases like these impact the already stressed poor communities the most, the ones that are barely able to pay their utility bills in the first place.
To many of us that
understand basic economics, the price increases that we are currently seeing with coal, gas and oil are not entirely surprising. All fossil fuels are fininte resources that are used and not replaced. As the world uses more and more of these resources, the scarcer and more valuable they become, and therefore the price goes up accordingly.
This is not wholly a bad thing if the economy is allowed to work its magic. Other forms of (renewable) energy will become more competitive, our reliance on fossil fuels will go down as we use more alternative energies to meet our needs, and as demand for fossil fuels drops so will the price. Pure magic.
But our utilities are not listening to the market and apparently are not big fans of Adam Smith.
In spite of fact that we are running out of coal and prices are skyrocketing, Dominion Power still wants to build a new coal plant to lock Virginians into 50 more years of dirty, inefficient, and expensive technology. The last time I checked, the price of solar and wind energy were coming down -- they also provide the benefit of utilizing power sources (the sun and wind) that is not subject to price shocks. So it wouldn't matter how much of the sun China is using, we will still get our fair share as well.
Dominion is not thinking like a rational consumer, they are mortgaging our future for short term gains (for why that is bad, see: the current housing foreclosure crisis). Wind and solar are predictable investments, coal is not.
Our Commonwealth would be better served by renewable energy, if only we had the leadership to help bring it here.
Where would it be placed
How much would it cost
As to solar power, check this out:
A Silicon Valley startup says it has developed technology that can deliver solar power in about a year at prices competitive with coal-fired electricity, a milestone that would leapfrog other more established players and turbocharge the fast-growing industry.SUNRGI's "concentrated photovoltaic" system relies on lenses to magnify sunlight 2,000 times, letting it produce as much electricity as standard panels with a far smaller system.
[...]
Solar power is acclaimed as free of greenhouse gas emissions and able to supply electricity midday when demand is highest. But its cost - 20 cents to 30 cents a kilowatt-hour - has inhibited broad adoption. Solar makes up less than 1 percent of U.S. power generation.
An armada of solar technology makers aim to drive solar's price to 10 to 18 cents a kilowatt hour by 2010, and 5 to 10 cents by 2015, at or below utility costs. SUNRGI's timetable is far more aggressive.
The bottom line is that the real "reality check" is:
*the planet is warming
*the polar ice caps are melting
*we have only 20-30 years to get this situation under control
*we're sending hundreds of billions of dollars a year to countries that hate us. Some of that money ends up in the hands of terrorist groups like Al Qaeda.
However, given the current population growth and demand at best I can see maintaining current levels. To actually reduce demand or consumption is divorced from reality.
Cost effectiveness
One company thats still a startup
Mass production is even further away
Power is needed now
Space issues again
Bottom line...
Look I am on your side in all of this however its important to keep things in perspective. Mainly, there is an immediate ever increasing need for energy that needs to be addressed now.