Pending carbon regulation is expected to impose sharp cost increases for coal plants. Data by Austin Energy’s consultants (PACE) suggest the cost of operating the Fayette coal plant will roughly double from current costs ($24.6 per MWh in 2008). PACE Consulting estimated that by 2020, carbon costs for the Fayette Power Project (FPP) would amount to $25 per MWh (see below).
Assuming there is no further increase in fuel or maintenance costs, this would yield an average production cost for the Fayette coal plant of $50 per MWh — a number that does NOT include the cost of the power plant or cost of emission control equipment that is being installed today or may be required in the future.
In comparison, Austin Energy’s average “all-in” cost of generation from wind power contracts during the past 10 years has ranged from $26 to $46 per MWh (see graph below). PACE consulting estimates future wind power through 2020 to be available for about $45 per MWh. (These numbers do not include the cost of ERCOT fees or possible congestion charges, which on a long-term average basis could amount to several dollars per MWh of additional cost.)
Extracts from information supplied by Austin Energy, 9-2-09:
The graph below (also provided 9-2-09 by Austin Energy) represents the “all in” cost of generation for both operating costs and capital costs of Austin Energy’s resources (Note that nuclear power has lower operating cost than coal, but when the enormous capital cost is included, the South Texas Nuclear Project (STNP) is more expensive than FPP. Austin has used STNP for about 20 years but still owes about $800 million on the plant):
