Power Systems need firm generation capacity

Implications: Many current fuels and clean sources for power generation provide non-firm supplies. Coal remains the cheapest most cheaply and easily stored power generation fuel, and therefore must remain in the fuel misx of most generators.

Analysis: Wind and hydro power is intermittant. A period of a high pressure system may creat little wind for wind farms. Hydro output is either must take due to the finite capacity behind dams and the need to maintain minimum river flows, and during drought conditions, there is generally no or at best reduced output. Nuclear power is relatively expensive to construct, and is often ruled out on political grounds. Oil is relatively easy to store and utilise, but is particularly expensive. Natural gas supplies can be seriously curtailed for political reasons, and isexpensive to store, and arguably too valuable for use as a chemical feedstock, to ituse for power generation. Coal has escalated in cost in recent times but still remains a cost effective for power station. Provided adequate stocks are maintained at collieries, ports and power stations it is the best way to maintain security of supply. New cleaner coal technologies are increasing the amount of coal generation that has acceptable limits of emissions, and more clean up of existing coal-fired plants will reduce emissions. The world trade in physical coal is now around 800 million tonnes annually, with a global network of producers, and well established price markers. With coal on the ground a generator can produce electricity and provide firm generation capacity.