• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 10 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 2 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 1 hour Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 13 hours Struggle For Supremacy: Kremlin Condemns Alleged U.S. Ultimatum To Turkey Over Missile Deal
  • 6 hours Apple Bid To Buy Tesla in 2013 For $240 a Share
  • 10 hours Another surprise 'build'
  • 18 hours Solar Cheaper than Coal
  • 10 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 9 hours California's Oil Industry Collapses Despite Shale Boom
  • 10 hours IMO2020 To scrub or not to scrub
  • 10 hours IMO 2020 could create fierce competition for scarce water resources
  • 14 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 11 hours Global Warming Making The Rich Richer
Saudi Arabia Scrambles To Calm Oil Markets

Saudi Arabia Scrambles To Calm Oil Markets

Saudi Arabia stated that it…

No, The Oil Glut Hasn’t Disappeared

No, The Oil Glut Hasn’t Disappeared

Weaker than expected oil demand…

Europe Set for a Coal Power Boom

Despite the fact that the EU will stop giving out free carbon permits soon, coal power is set to boom as other factors make it the most profitable source of energy in Europe.

European utilities such as EON AG and RWE AG are set to open six times as many coal-burning power plants than gas-burning plants by 2015. Goldman Sachs Group suggests that this is because profits from collar-fired power stations are set to more than double by that date.

Laurent Segalen, a director at ECMF (the European Carbon Macro Fund), said that “the economics for coal are near the best we’ve seen in five years.”

The reason for this boost in profitability? The massive fall in prices of UN credits, known as Certified Emission Reductions (CERs). Over the last year the price of UN credits for 2013 has fallen by 80% making them, according to Mr. Segalen, “an amazing bargain.”

Bloomberg calculate that coal plants will become 58% more profitable by using the UN CERs instead of the EU carbon permits. Taking Germany as an example, their profit margin would be €15.69 with CERs, or €9.96 with an EU permit. Natural Gas power plants cannot make a profit under either scheme.

Patrick Hummel, a USB analyst in Zurich, believes that utilities will install up to 10,600 megawatts of new coal plants in the next four years, spread over several central European countries; compared to just 1,600 megawatts of natural gas power plants.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Bob Wallace on October 08 2012 said:
    The new coal burning plants are replacing (not adding to) the older plants that either have been or will soon be decommissioned.

    By 2020, 18.5 gigawatts of coal power capacity will be decommissioned, whereas only 11.3 gigawatts will be newly installed.

    http://www.renewableenergyworld.com/rea/blog/post/2012/09/the-truth-about-germanys-coal
  • Scottar on September 25 2012 said:
    Europe is rushing to coal as they found out renewables are not feasible on the grid. And the only thing renewable about them is the infrastructure costs for replacement. Coal company's know that wind and solar require backup so they won't go out of business nor will they be replaced except by 4th gen nuclear.

    Coal pollution of particulates and SO2 can be cleaned up. The CO2 is an added benefit for the plants.

    Andrey has been drinking too much enviro koolaide.
  • Andrey on September 25 2012 said:
    The world is rushing for new, clean tech for energy generation, but apparently we in Europe want to go back to basics - coal! Wow, then why all the buzz around renewables? It appears that sufficient amounts of money can persuade people that, because we are buying and selling carbon credits we can continue to pollute but without the pollution! Kicking the can down the road - again.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News