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Rising Cost of Coal Mining Makes Wind Power Look Even Better

| Saturday October 27th, 2012 | 5 Comments

the rising cost of coal miningWhile the cost of wind power has been dropping, a fascinating article in The Washington Post describes how coal mining is becoming more difficult and expensive. The coal industry cites environmental regulations as the main source of upward pressure on costs but WaPo writer Steven Mufson makes a convincing case that factors within the coal fields themselves are the main culprit.

Mufson is careful to note that the trend varies from one coal field to another, but it is occurring in the key coal-producing region of Appalachia among others. Against the backdrop of falling wind prices, the rising cost of coal provides businesses with yet another incentive to explore ways of tapping the wind to power their operations.

Cost of coal goes up

As described by Mufson, the problem is mainly geological. In some regions the “easy” coal is being tapped out, and the remaining reserves are thinner and more difficult to mine efficiently

In the past, new technology has been able to compensate for the increased difficulty. However, Mufson cites research by the U.S. Energy Information Administration, which forecasts that new technology will not continue to have the same impact. That’s partly because the expense of new equipment is itself a factor.

Mufson’s article is rich in detail and well worth reading in full (here’s that link again).

Cost of wind goes down

In contrast to coal’s troubles, the average cost of wind power has been on a long term, downward spiral. It has dropped 90 percent since 1980 according to the American Wind Energy Association.

Aside from the development of more efficient wind power technologies, the falling trend in wind power prices is due to the existence of the long-running federal Production Tax Credit for wind (PTC).

As for whether or not wind power “deserves” a taxpayer subsidy, the fact is that U.S. taxpayers have subsidized energy production for generations, whether it’s fossil fuels or alternative energy, because a steady flow of power has long been recognized as essential to the general welfare.

Beyond the cost of coal mining

The expense of getting coal out of the ground represents just one aspect of the overall cost. The impact of coal mining and coal-fired power plants on local environments and public health has been well documented, and the significant role of coal in climate change is also supported by the available data.

Coal transportation, which Mufson cites as an additional factor in rising costs, also contributes to greenhouse gas emissions and negative effects on local communities, including port cities.

An additional complication is the disposal of coal ash, which is typically deposited in open lagoons. The shortcomings of this solution were exposed in a dramatic way in 2009, when a coal ash lagoon broke and flooded a Tennessee community.  Air quality problems associated with coal ash disposal are also coming to light.

More companies switch to wind power

Given coal’s burdensome issues, wind power has a clear advantage in terms of a company’s public image. The wind turbine company Vestas has come up with a study that bears out the promotional advantages, showing that more consumers prefer to buy products from companies that use wind power.

Though on site wind power is beyond the reach of many companies, the growth of large-scale wind farms, advanced energy storage and new transmissions lines  are bringing off site wind power within reach of more areas.

Just a couple of examples are the “Grain Belt Express” transmission line planned for bringing power from wind-rich Kansas to Eastern states, and regional plan to build offshore wind turbines in the Great Lakes.

Purchasing offsets is another way that companies can lay claim to using clean energy.

Image: Tennessee coal ash spill, some rights reserved by appalachian.voices.

Follow me on Twitter: @TinaMCasey.


▼▼▼      5 Comments     ▼▼▼

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  • bamboobreeze

    What are your thoughts in light of the likely December expiration of the Production Tax Credit for wind? Your article is wonderfully optimistic, which I appreciate, but my friend who works in the wind energy field has seen significant decline in wind development and large layoffs due to lack of security in future tax subsidies.

  • freemarketbest

    All subsidies should be gone for oil, gas, coal, wind and solar. Each source should compete on its own merits.

  • http://twitter.com/DocWheat David Wheat

    Coal mining and burning causes thousands of times more deaths per year than any other kind of energy production (except maybe burning biomass such as wood, charcoal and dung for cooking). See http://goo.gl/hgouZ.

  • Scott Thorsen

    The AWEA and companies like Clean Line Energy enjoy to make comparisons to coal and wind energy with the implications that wind energy is picking up where coal plants are retiring. The AWEA and Rock Island CLean Line (RICL) conveniently forget to mention about the boom in natural gas and the economical priced electricity created by the natural gas boom.

    In the mean time American coal is being exported to China to provide energy for manufacturing jobs which we in turn import the finished products through WalMart. How much is the price of coal being driven by foreign demand?

    This is not a coal versus wind energy issue like the American WInd Energy Association would like to pretend. There are other forces involved here.

    It is alo a myth that the cost of wind is going down. In 2010, America paid the wind energy over $56 for every megawatt produced through government subsidies and “grants”. On top of that, consumers paid for the electricity! If wind energy is actually become more economical, then why is the industry crying for a renewal of the Production Tax Credit?

    From 2009 to 2012, we have given Horizon Wind Energy over 400 million dollars through our government. This went to a company that employees about 330 people. On top of that, Horizon Wind Energy is a European owned company. Subsidies to the wind energy industry is not providing jobs. It is not providing economical energy. The Production Tax Credit is borrowing money from China and giving it European companies like Horizon.

    It is time wind energy prove they can be competitive in a modern energy market.

    Thank you.

  • holdbar

    Coal ash disposal is an insurmountable problem. The current plan is to dump it and forget it – meaning the community will eventually absorb the costs (this is simply communism).

    Warren Buffett’s BNSF trains are hauling the coal to west coast for export to China.

    Mercury in your seafood – thank you Coal.

    Mercury in pristine mountain lakes:

    http://seattletimes.com/html/localnews/2004244996_parkpollution27m.html

    West Virginia has had coal mining for over a century and is one of the poorest regions in the USA.