Posts Tagged ‘Power plant capital costs’

Power generation from shale gas is here to stay

May 31, 2011

The capital cost of building different types of power plants is a reality that cannot be wished away:

November 2010 Capital costs for power plants

Gas fired combined cycle plant use the least capital of all power generation plants. With shale gas set to become even cheaper than natural gas and with gas fired plants having capacity factors well above 90% compared to the 25% of wind power or the 30% of solar plants, it is a no-brainer to conclude that wherever shale gas is available it is going to be used for power generation.

Where it is not available coal fired plants and nuclear plants will continue to be used.

Intermittent renewable power plants are going to need subsidies for a long time to come to get anywhere near the cost of electricity from gas. At best they could be useful to augment production of electricity but being intermittent cannot really contribute to reliable capacity.

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