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March 26, 2007

COE ($/kWh) to Increase 50% to 80%

Analysis of: Carbon market to grow 50% in 2007 | www.wbcsd.org
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Hans Linhardt, PresidentHans Linhardt
President, LTDI, Inc.
Implications: The artificially created carbon market is an environmentalist's dream, but does not work on a globally leveled playing field and will lead to severe increases of the cost of electricity (COE) in all developed countries. 

Analysis: Without sequestering of CO2 and/or spent nuclear radioactive fuel residues (U), nuclear power exhibits the lowest COE, followed by coal fired pulverized coal plants (PC), coal fed IGCCs and NG fed gas turbine combined cycle units (GT CC).  However, with demand for sequestration of all CO2 and/or U, the picture changes drastically.  COE increases across the board by an average of 80%.  Nulcear exhibits still the lowest CEO (but highest increase to 6.5cents/kWh), followed by coal fed IGCC, PC and then GT CC with 10cents/kWh.

The average doubling of all COEs for the sake of CO2 and/or U sequestration could have a dramatic backlash on our economy and needs serious attention at this crossroad of our energy politics and global geopolitical considerations.  

Other Analyses of the Same Source Article:
The growing role for the US in the Carbon Market
March 30, 2007, Author: Lawrence Neuman, President, CHINA POWER DEVELOPMENT CORP.
Volume and Liquidity Improving in the Carbon Markets
March 30, 2007, Author: Peter Clarke, Managing Director, Affine Capital Management
Carbon Market Forecast May Be Too Low
March 29, 2007, Author: GLG Expert Contributor
Carbon Trading and the Reality of Global Warming
March 26, 2007, Author: GLG Expert Contributor

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