Coal's Star Falling; Natural Gas on Upswing

Natural gas is projected to be the cheapest energy source in the report from the Electric Power Research Institute (EPRI), based largely on its availability through newly cost-effective extraction technology from North American shale. Costs for nuclear will remain steady, EPRI predicts, while the price of biomass, solar, and wind are expected to come down slightly.

The authors used a model to compare the costs of different generation technologies, an approach that allowed them to take carbon taxes into account as well as startup and operational costs, which vary greatly between generation methods.

The report does not take into account the costs and environmental degradation associated with fossil fuel extraction, especially the with regard to hydraulic fracturing, or fracking, used in natural gas extraction. For the full report, visit www.epri.com.