Fifty years is a long time.
Since 1959, we have seen massive technological, social and environmental reform. We have seen the beginning of the Space Age, the Information Age and the Digital Age. DDT has been banned, the Clean Air and Water Acts have stemmed the buildup of pollution and the Kyoto Protocol has been signed (and then blatantly ignored). “Clean,” “organic” and “sustainable” have become household buzzwords. Global climate change, human overpopulation and habitat destruction are now considered major crises.
And the next 50 years promise more progress.
But now, the city of Bowling Green has decided to shackle us to an outdated form of energy for the next 50 years. Recently, the city signed a contract with the American Municipal Power Generating Station (AMPGS), a proposed coal-fired power plant in Meigs County, Ohio.
This contract binds the city to purchase a set amount of power from the plant for half a century, regardless of changes in demand, price or technology. Environmental concerns aside (and these concerns are sizable), this is a bad deal for BG.
The age of fossil fuels is ending. Multiple bills have been introduced to Congress to tax carbon emissions and 20 states have already introduced emissions caps. Unfortunately, coal produces very high levels of carbon dioxide, so under these regulations, coal power will soon become more expensive than ever. The AMPGS would release roughly 7.3 million tons of carbon dioxide per year, much of which would be taxed under regulatory legislation.
Given emissions regulations already in the works, American Municipal Power (AMP) itself estimates that they will be charged $5-$15 for every ton of carbon dioxide produced by 2030. Other analysts find this estimate too optimistic; a report from MIT predicts carbon taxes will be $74 per ton. These costs, of course, will be passed on to the consumer.
AMP has left a place in the power plant’s design to install carbon dioxide scrubbers at some future date. These scrubbers would sequester the plant’s carbon emissions (that is, convert the carbon dioxide into a form that can be stored). However, these scrubbers have only been tested in laboratories; there is no proof they will work on a large scale. And even if the scrubbers do work, the National Energy Technology Laboratory estimates the sequestration process could increase the cost of power by as much as 81 percent.
In addition, the construction cost of the plant is quickly rising. When construction was first proposed in October 2005, the plant’s cost was $1.2 billion. By June 2007, it was up to $2.9 billion. Towns like BG will be the ones responsible for paying these growing costs.
By signing this contract, BG is basically betting that coal-fire power will still be cheap and efficient in 50 years. Given the history of the last five decades, this is a bad bet. Half a century ago, solar cells were first being introduced. Modern windmill turbines were not even developed until the 1980s.
In addition, alternative energy development is currently getting more and more support. A major part of President Obama’s economic stimulus package is a Clean Energy Financing Incentive, which would provide increased funding for developing alternative energy sources and making them more cost-effective.
Given the technological developments that could happen in the next 50 years, it makes no sense for BG to be chained to this coal power plant.
Besides, BG already has reasonable alternatives to signing onto this contract. As anyone who has ever been outside in BG knows, this area has abundant wind resources. We already have four wind turbines supplying 7.2 megawatts of power. Additional windmills could easily provide the same amount of power we would be getting from AMPGS, especially given recent improvements in windmill efficiency. Currently, Ohio is providing sizable grants for wind farms.
With clean power technology being more efficient and affordable than ever, there is no reason for BG to have signed this contract.
