Let’s look at the cost of coal-fired power over the long term – aside from the environmental impact, which is worrying enough. Combustion of carbon (the main component of coal) produces 393.52 MJ/kMol – as 1 kilo-mole of carbon is 12.011 kg, that’s 32.76 MJ/kg. But coal also contains a lot of “ash” – incombustible junk – and so typically coal burns about 27 MJ/kg. Cheaper power-utilities in China dump the ash straight into the exhaust stream, which is rather nasty for everyone downwind, but in developed countries the stuff is captured and sold as a concrete ingredient, if it’s not too radioactive. Yes, radioactive, from all the uranium and thorium that naturally occurs in some coal-fields.
That aside a ton of coal typically costs $20/ton to dig up, crush and get to the furnace. Once there the stuff is burnt and the heat boils water into super-critical steam, pushing turbines. Some heat is recovered in a good coal fired plant, getting about 40% efficiency from coal lump to power-meter at the station’s transformers upping the voltage for transmission. Thus every megawatt produced means about 2.5 megawatts of heat from burning coal, about 0.0926 kg coal burnt and about 0.338 kg of carbon dioxide produced. A 500 megawatt plant thus needs to burn 46.3 kg/second or 4,000 tons of coal a day. And the plant can’t slack off because the boiler and furnaces need to burn that ALL the time. Design limitation. Thus a coal plant costs about $80,000/day in coal-mining. About $29.22 million a year. Over 30 years it burns 43.83 million tons of coal, makes 122 million tons of CO2, 7.7 million tons of ash and costs $876.6 million in coal-mining costs (non-adjusted for inflation.) Thus the $750 million dollar coal-plant costs another $876.6 million in coal-mining for 500 MW for 30 years. Throw in the costs of running the thing (about 30% extra) and, in reality, the power costs maybe $2.11 billion (non-inflation adjusted) – about $0.016 per kW.hr. So the margin of selling it for $0.05/kW.hr is quite good.
But coal isn’t always that cheap. Here in Queensland, Australia, coal is cheap – we have some of the best anthracite (high carbon coal) in the world. Our Government power companies seem to burn it for close to cost prices. If you have to buy it on the market, not just mine it, then it costs ~$US 120/ton or so. Then the costs jump to $0.0457/kW.hr and Solar Powersats look a whole lot more attractive. No wonder places like Japan are interested.
What about a “carbon tax”? If, like the nuclear industry, coal-plants had to cost-in carbon dioxide disposal things get interesting – estimates of $20/ton are bandied around as viable. That means about $60 per ton of coal burnt. Add that to the above and we get at worst a cost of $0.0657/kW.hr. Nukes start looking like the cheapest option, unless our powersats start coming down a bit more.
So how many kW.hr does a 500 MW power-source produce in 30 years? Assuming 263,000 hours in 30 years that’s 131.5 million kW.hr. If we had a solar panel on the ground only about ~ 25% of those hours would be producing energy at full strength, due to the day/night cycle and cloud-cover. Thus, to get the same power overall ground-based solar needs x4 the expected power supply, minimum. With batteries it’s more like x5 because of the inefficiency of charging/discharging batteries. Thus, if power cells cost ~ $4/W (installed with power conditioning & storage) and we want 1,000 W continual supply we need 5,000 W of cells, and it all costs $20,000. Repaid over 263,000 hours it costs $0.076/kW.hr. With interest, costs spiral to ~ $0.25/kW.hr. But solar PV cells are coming down in price all the time. Nanosolar is planning on selling for ~$1/W, thus implying eventual reduction of price to ~ $0.0625/kW.hr. But only if we’re repaying over a leisurely 30 years. Some PVs decline by ~ 10% every few years or so. If we want a 10 year repayment time we’re back up to $0.19/kW.hr.