Interesting numbers from Deutsche Bank carbon market analyst Mark Lewis this week. At Point Carbon's Carbon Market Insights conference in Copenhagen, he said building nuclear plants in the EU would be the least expensive new-build power source if CO2 allowances are valued at 35 euros a metric ton or more between 2013 and 2020. The 35 euros is about $46 right now. EU allowances are now selling in the 11-13 euro range.
Our colleague Russell Dinnage reports in Emissions Daily that according to Lewis, the long-term price for power from nuclear plants at the current low allowance prices is 60 euros/MWh. At these allowance prices, power from coal plants is about 59 euros, from gas plants about 53 euros and from carbon capture/storage plants around 90 euros, Lewis said. But allowance prices are expected to rise in the next phase of the trading program.
From 2013 to 2020, at 35 euros, coal-fired and gas-fired power would cost 86 euros to produce. Coal plants with CCS would produce at a cost of 102 euros. But nuclear power would still come in at 60 euros – clearly the price winner.
Even so, Lewis said, "nuclear power is not the panacea." Existing coal plants will still be needed, it seems, and "CCS still has to happen in order for the lights to stay affordably on."
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