From E&E News ($ub req'd): Indiana has approved a $2 billion, 630 MW integrated gasificiation/combined cycle coal plant. Two billion divided by 630 MW = $3,174/kW. If we assume that coal equity investors expect to recover their investment over 20 years, with an 11 percent return, that works out to 5.7 cents/kWh just to pay off the capital for the power plant. Add in another 3 cents or so for transmission and distribution, and a couple cents for fuel and operating costs, and this plant will work out to over 10 cents in retail prices. This in a state where …
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Sean Casten is president & CEO of Recycled Energy Development, LLC, a company devoted to profitably reducing greenhouse emissions.