Financing the low carbon economy

I found out recently that the price of electricity has dropped somewhat - I presume that this is because demand (with the recession and all) has tailed away.

I'm told that coal generators aren't running their opted out plants (those that aren't part of the large combustion plant directive and as such have to shut either by 2015 or after 200000 operating hours, as measured from 1st Jan 2008).
Why run the plant now to generate for minimal return if you can run it later for a better return - espectially as RWE think we're going to run out of electricity in the summer of 2012 (and that means an increased electricity price).

So it makes sense that EurActive is talking about problems financing the low carbon economy - afterall if a construction firm can't get credit (or only at a high rate of return for the banks) they're going to more which can only be passed on to the consumer.

Cofiring, CCS and Risk.

Okay, I've not been posting for a few months.

A few things have happened since then - the governemnt said yes, in principle to coal fired power stations, simultaneously re-anouncing the same money that had already been announced a few months earlier (actually less a bit).
They're calling for CCS from startup.

That should be possible, but understandably carries a big risk to the energy companies which they want to mitigate.

It's not about wrigging out, but about putting a limit on the cheque they have to sign if unexpectant things happen.

Perhaps this is why RWE are apparently pulling out of building new coal fired power stations in the UK.

To add to this picture the UK's first CCS plant has gone live - up on the Forth estuary, scotland.

Bloomberg have also written a piece about cofiring and dedicated wood burning plant. Remember that dedicated plant, whilst earning more ROCs (so making more money) are less efficient, so if there's a squeeze on the supply of wood give you less electricity for the same fuel supply.
RWE ag opperate in the UK under the name npower (RWE npower).