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Power The Almighty Buck Businesses

More Than 40 Percent of World Coal Plants Are Unprofitable, Says Report (reuters.com) 281

An anonymous reader quotes a report from Reuters: More than 40 percent of the world's coal plants are operating at a loss due to high fuel costs and that proportion could to rise to nearly 75 percent by 2040, a report by environmental think-tank Carbon Tracker showed on Friday. London-based Carbon Tracker analyzed the profitability of 6,685 coal plants around the world, representing 95 percent of operating capacity and 90 percent of capacity under construction. It found that 42 percent of global coal capacity is already unprofitable. From 2019 onwards, it expects falling renewable energy costs, air pollution regulations and carbon pricing to result in further cost pressures and make around 72 percent of the fleet cashflow negative by 2040. In addition, by 2030, new wind and solar will be cheaper than continuing to operate 96 percent of today's existing and planned coal plants, the report said.
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More Than 40 Percent of World Coal Plants Are Unprofitable, Says Report

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  • Nat Gas (Score:5, Informative)

    by Mr D from 63 ( 3395377 ) on Saturday December 01, 2018 @08:19AM (#57731262)
    Natural Gas has depressed prices so much, coal can't compete. Intentionally reduced capacity factors, using more gas instead, makes it even harder for coal.
  • Good (Score:5, Insightful)

    by Alain Williams ( 2972 ) <addw@phcomp.co.uk> on Saturday December 01, 2018 @08:35AM (#57731298) Homepage

    Hopefully this will lead to increased adoption of cleaner power production - that is not so bad for the environment.

    I am not saying that all clean power is cheaper but the more of it that gets used the cheaper that it will become.

    • Re:Good (Score:4, Interesting)

      by El Cubano ( 631386 ) on Saturday December 01, 2018 @09:14AM (#57731444)

      Hopefully this will lead to increased adoption of cleaner power production - that is not so bad for the environment.

      I agree. When I was younger I spent lots of time outdoors. Preserving the natural beauty of the world should be something humanity strives to do.

      I am not saying that all clean power is cheaper but the more of it that gets used the cheaper that it will become.

      I think what was happened is that we have reached the "tipping point" where clean energy is actually competitive in the marketplace. Interestingly, all the various governments around the world that have pushed for clean energy production have varying economic and regulatory philosophies (as evidenced by the various approaches to regulation of dirty power and economic incentives/penalties for varies participants in the energy market), but the end result has been the same: for the longest time it just looked like a money pit, and now we start to see some large scale benefit.

      I think that a solution based on market forces (i.e, people doing what benefits them economically) will always be stronger, healthier, and more effective than one based on regulatory forces. Granted, sometimes regulatory forces are required (e.g., to maintain clean air and water in the era of industrial production and dirty power), but those are never as good as market forces because regulations mean people do what they are required to do (and people will try to find ways to avoid meeting the requirements) while market forces mean people act in their own best interests.

  • Missing data point (Score:5, Insightful)

    by virtig01 ( 414328 ) on Saturday December 01, 2018 @09:05AM (#57731386)

    Utilities are one of the most regulated and subsidized industries in the world. Additionally, in some places, generating capacity is government-owned, and public enterprises frequently operate at a loss. So the real question is: how much of all generating capacity is unprofitable?

    Coal will die, but saying that plants are currently unprofitable isn't necessarily an indication of anything. It needs to be compared on a relative basis to alternatives.

    • So the real question is: how much of all generating capacity is unprofitable?

      Precisely. I get political fliers in the mail all the time asking me to vote for politicians that support wind subsidies, asking me to call my congresscritters to support wind subsidies, or even from my utility asking me to pay extra for electricity produced from wind.

      If wind power is in fact cheaper than coal then I should not be seeing these fliers in my mail.

      Wind is not cheaper than coal. This is especially true when taking into account the over capacity needed to compensate for the poor capacity facto

    • by AmiMoJo ( 196126 )

      On-shore wind in the UK is profitable without subsidy now. Off-shore will take a few more years.

      But a better question is how much of the subsidy is necessary to keep the lights on and how much is enabling unnecessary environmental damage.

  • so long as coal miners can decide our presidential elections by swinging Ohio and Virginia. That said, I've yet to hear anyone from the left give those workers a viable alternative to working in the mines. So far the answer has been "Time to reskill". Those guys know coal mining is a dying thing. They'd reskill if they could.

    What we really need is a federal jobs guarantee like they did in the 30s. But nobody wants to pay for that. So expect more political distortions.
    • I sincerely doubt that coal miners won the presidency for Trump. Also, I don't know any coal mines in Virginia. You must be thinking of West Virginia.
  • Just a thought, but they might be profitable if they switched from internal combustion engine-driven vehicles and tools to plug-in electrics recharged from renewable sources and nuclear power.. oh, wait..
  • Well, that's a good start.

    We need to be off them altogether, right around, oh, let's see, now.
  • sandwiches? Because that all Americans need to fuel the miners who are returning to the mines in droves to aid our exalted leader's plan to Make America Great Again.

  • Long before fracking and renewables, huge numbers of coal mines were operating at a loss for political reasons.
    The same reason that motor vehicle factories and agriculture in so many countries (including US and EU) are surviving only with government subsidies.

    The question is not "why are they losing money?" - all mines have a limited lifetime before becoming unviable.

    The question should be "Why are they still operating?"

Two can Live as Cheaply as One for Half as Long. -- Howard Kandel

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