CERA Finds Power Plant Costs Doubled
A new report from Cambridge Energy Research Associates (CERA) says the cost of building a new power plant has more than doubled since 2000.
Wind energy showed the biggest rise in costs — 6 percent since the third quarter of 2007 and 108 percent since 2000 — as rising demand for wind turbines boosted equipment costs and time to deliver.
CERA says costs fell slightly in the past six months, mainly because nuclear equipment costs declined. But that is not likely to continue.
“There are no signs that this is the start of a downward trend,” said Candida Scott, CERA senior director of cost and technology. “The fundamentals that have driven costs upward for the past eight years — supply constraints, increasing wages and rising materials costs — remain in place and will continue during 2008.”
The report goes on to say that demand for new power facilities remains high around the world, while the weak U.S. dollar increases procurement costs for equipment and materials.
