While humility makes it awkward for me to be posting this, David said it would be OK. (I swear!) More seriously, this is a day of great pride at RED and I wanted to share a bit with you -- and perhaps explain the lack of time I've had for more insightful posts lately. We've just completed a pretty substantial equity raise, with funds available to invest in recycled energy projects that convert waste heat to power. The target for our investments are places where we can simultaneously generate profits, lower energy costs, and reduce greenhouse-gas emissions - in other …

As follow-up to my post yesterday: There is now a bidding war emerging for the FutureGen clean coal plant, targeted to cost $6500/kW. Texas and Illinois are fighting to win this fantastic prize. If they get it, they'll ensure they can keep burning coal, but will do it in a plant that is absurdly expensive. As a fringe benefit, they'll generate hydrogen (aka, a fuel that no one is presently demanding for their vehicles), on the off chance that if a market arises they can sell it. Goodness knows they'll need it if the coal plant is ever going to …

As follow-up to my post yesterday: There is now a bidding war emerging for the FutureGen clean coal plant, targeted to cost $6500/kW. Texas and Illinois are fighting to win this fantastic prize. If they get it, they'll ensure they can keep burning coal, but will do it in a plant that is absurdly expensive. As a fringe benefit, they'll generate hydrogen (aka, a fuel that no one is presently demanding for their vehicles), on the off chance that if a market arises they can sell it. Goodness knows they'll need it if the coal plant is ever going to …

This from Greenwire today ($ub req'd): "The DOE FutureGen program has announced that their "clean coal" plus carbon sequestration is checking in at $1.8 billion for a 275 MW plant, or $6500/kW." OK, so it's at an early stage, but even if you cut that cost in half, it still doesn't pencil out. How long before we get over the illusion that coal is cheap? Story below the fold. (Note that I have given them the benefit of the doubt that their description of the plant as a "275 watt" facility was a typographical error.) The cost of a federal …

New York state has announced that they intend to auction 100% of their carbon allowances under RGGI. This is a good thing. There is a 60 day comment period now open. File those comments, NY Gristers!

This just in from Restructuring Today ($ub req'd): Sunflower Electric, of the recent Kansas decision not to allow an electric permit because of CO2 concerns, has argued that the decision was a bad idea because it will drive up power prices. But their math is wrong. Here's a partial excerpt from the RT story: A decision by the Kansas Department of Health & Environment to deny a coal power plant permit would mean higher power bills for some. That's "an absolute certainty," Sunflower Electric Power told us Friday. How much higher? At today's prices the firm could pay 1.5¢ for …

I just finished reading Shellenberger & Nordhaus' latest, and while I realize I am a bit late to the party, I think they say some fascinating things -- perhaps not for the reasons they intended. S&N manage to succinctly distill an awful lot of the ideas that are core not only to policy debates on carbon, but to policy discussions of any major change to the economy. Understanding these biases is critical to understanding why S&N write what they write, but also why they are so deeply wrong. I recently joked to an economist friend that economics is the only …

From Greenwire today (sub req'd): water availability may limit new power plants. This is widely appreciated in the power sector, but doesn't get as much attention elsewhere. It's especially acute as our population growth moves south and west where we are especially water-limited. What's under-appreciated is that this is a story about efficiency. When two thirds of the fuel we burn in power plants is wasted as heat, and that heat is rejected in cooling towers (at least in coal and nuke facilities), any gain in energy efficiency is a reduction in water use. Given the huge gains available in …

There's a great line often ascribed to Yogi Berra: "If you don't know where you are going, you might wind up someplace else." This perfectly describes U.S. energy policy -- and offers a way forward that would not only create lots of social benefits, but just might make energy policy something that matters to U.S. electoral politics. To see why, try ranking those events in political history when politicians really got it right. Declaration of Independence? Emancipation Proclamation? Man on the moon? Pick whichever ones you'd like. Here's my prediction: those great moments were all framed around goals we sought …

In The Karate Kid, Mr. Miyagi advises that "It is good to know karate. It is good not to know karate. It is not good to know a little karate." With the price caps now coming off in the few states that partially deregulated their electricity grids, there is a rising backlash against competitive markets, with some of that backlash even coming from normally pro-market groups like The Cato Institute. This backlashers generally argue that partial deregulation has taught us that deregulation doesn't work in the electric sector. But we ought to remember Mr. Miyagi's advice, lest we draw the …