Thursday, 16 Jun 2011
Reuters citing Mr John Rowe Exelon Corp Chairman as saying that low natural gas prices from plentiful new sources will allow utilities in the United States to solve several thorny problems while keeping electricity affordable.
Mr Rowe said Ample gas from shale formations will allow utilities to quickly build more gas-fired plants to replace polluting coal plants, making it possible to have a much cleaner supply while still being economical.
He said that "For the next decade, natural gas will dominate the new supply of electricity."
Utilities are weighing the costs of pending federal regulations to reduce air pollution from coal-fired power plants, but Mr Rowe said cheaper gas, not stricter regulation, is prompting companies to shut older, smaller coal units.
Mr Rowe said warnings that the tougher regulations could result in huge price increases or threaten grid reliability are a bit of a red herring.
He said that "Building new natural gas plants and using more gas at existing plants is half the price of new nuclear, much cheaper than wind, much cheaper than solar, much cheaper than experimental forms of coal and cheap enough to be a primary driver of the announcements that companies are shutting down coal units."
Earlier this week, American Electric Power Co said unrealistic timelines to comply with US Environmental Protection Agency rules would force it to shut nearly one quarter of its coal fleet and to spend about USD 8 billion. (sourced from Reuters)
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