Wednesday, November 05, 2008
Editorial: Traditional coal plants have no future
They will go bankrupt if they refuse to adapt to lower carbon standards.
From the RoundTable blog
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Nearly a year ago, Barack Obama mentioned that a cap-and-trade system for carbon emissions, like the one he favors, would make traditional coal power plants too costly to run. Contrary to the spin in the final days of the campaign, this is no great scandal. Rather it is a realistic view of things to come.
The science is in, and the world must significantly reduce greenhouse gas emissions to prevent the worst consequences of a warmer planet. America, as one of the largest emitters, will have one of the hardest, most expensive roads to tread.
Coal and fossil fuels will remain part of the nation's energy portfolio for the foreseeable future, but not in their current form.
Both presidential candidates favored cap-and-trade systems on the trail, and the idea has some traction in Congress. The details differ -- such as whether the government should auction carbon allowances -- but fundamentally the idea is the same: American companies would buy and sell the right to pump carbon into the air.
It's a market-based approach. Companies could pay the going rate for carbon credits or they could keep that cost down by investing in other technologies. When it comes to coal plants, the most promising technology on the horizon is carbon capture and sequestration.
Obama spoke honestly. Coal-fired power plants would not be economically feasible if they do nothing to mitigate their greenhouse gases emissions.
Ultimately, the costs will fall on consumers. The days of cheap energy are behind us, barring some unexpected breakthrough in fusion. Those who refuse to adapt to the new energy paradigm -- personally or corporately -- will fail.
