In the context of the current Dutch debate on the preferred option for new power stations in the Netherlands, CE Delft has used a cash-flow computer model, developed in-house, to calculate the cost efficiency of various types of generating plant as a function of fuel prices and CO2 prices.
The preferred option for industry and the energy sector is coal-fired generating plant, because of the lower electricity production costs. From the angle of climate policy and NEC policy, renewables or gas-fired stations are preferable, but these have higher production costs. On the other hand, future climate policy is very likely to involve introduction of higher charges for CO2 emissions, which will push up production costs, particularly in the case of coal-fired plant. One solution to this problem might be CO2 capture and sequestration. An alternative is not to go for coal or gas, but for nuclear.
The main conclusions from CE’s analysis are as follows: