Hidden costs

An extreme example of a "hidden" or "external" cost of fossil fuel generation was provided by UK consultant David Milborrow. A recent analysis claims the cost of electricity from new coal plant in Germany is ECU 0.059/kWh. But since the pithead price of coal in Germany is more than three times the world market price, the true generation price is over ECU 0.090/kWh. This extra cost is not paid by the utility sector, however, but by the taxpayer: subsidies to the coal industry amount to ECU 3811 million a year. The cost of wind power in Germany now averages ECU 0.097/kWh, said Milborrow, but costs less on good sites. "In Germany, where coal receives a subsidy, wind is now cheaper," he concluded.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Windpower Monthly Events


Latest Jobs