Building new coal-fired or nuclear power plants is going to cost the nation more money next year, compared to what it took to construct them in 2010. But committing to more solar plants in 2011 will be less expensive than it was this year, according to the U.S. Energy Information Administration (EIA).

 

The EIA estimates that capital costs for new coal and nuclear power plants could be 25% to 37% above those calculated for 2010. “The higher cost estimates reflect many factors including the overall trend of rising costs of capital intensive technology in the power sector, higher global commodity prices, and the fact that there are relatively few construction firms with the ability to complete complex engineering projects such as a new nuclear or advanced coal power plant,” reports the EIA.

 

On the other hand, the cost of building solar plants that rely on thermal technology may be down 10% next year, and plants using photovoltaic technology could cost 25% less.

-Noel Brinkerhoff

 

Updated Capital Cost Estimates for Electricity Generation Plants (U.S. Energy Information Administration)