is the price a price signal?, page-9

In a seminar last Thursday, Stephen de Belle from Granite Power gave the following information.

Coal power economic status:

Cost $83 /MWh comprising,
Capital change (deprec.) $14
O&M $9
Fuel $60

Coal power commercial status:

Price $40 /MWh
Subsidies $43 /MWh

On the basis of the last figure a carbon price of $40 ? 50 /tonne might well be in order. It would also help to justify introducing a feed-in tariff for geothermal energy of around $150 /WMh . Various European countries have feed-in tariffs of EU220 /MWh (AUD 297).

Juke