A new economic report issued by the Bush administration gives detailed projections for the price of renewable energy, as compared to conventional coal-fired power production, in the year 2015.
According to the Economic Report of the President, delivered to Congress last month, photovoltaic (PV) solar will cost four times as much as conventional power generation, at roughly $288 per megawatt hour (Mwh). With an assumed capacity factor of 21.7%, the cost given consists of $269 for capital costs, $6 for fixed Operations & Management (O&M) and $13 for transmission.
The report, which does not take into account the costs to the environment or public health, says the Mwh cost of coal-fired generation in 2015 will be about $61, including capital cost, transmission and fuel. The report states that advanced coal with carbon capture and sequestration will cost $84 per Mwh–an ambitious projection seeing as the technology has yet to be demonstrated.
Advanced combined cycle gas-fired facilities will cost $65 per Mwh, assuming a 87% capacity factor.
Projected costs for solar thermal (capacity factor 31%) are $154 per MWh–split into $123 for capital cost, $21 for O&M and $11 for transmission. Wind was projected at $83 per MWh (capacity factor 35%).
Geothermal was priced competitively at $73 per MWH and biomass at $80.
Not surprisingly the report pushed for continued use of fossil fuels, stating that "Alternative energy sources are not the only way to address energy security and environmental concerns."
The report concedes that "Appropriately chosen alternative energy sources in the transportation and electricity generation sectors may help reduce (CO2) emissions."
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