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Competitiveness of Coal - The Evolution of Price

AUTHOR: Graham A Broadbent
DATE: March 1999

This report addresses the mechanisms of global coal trade and trends in production costs and discusses how the coal market price may be expected to behave in relation to that of gas. A major European electricity user who is mainly dependent on power from hydro and natural gas asked. The Clean Coal Centre to help with its understanding of electricity from coal as a competitive source of power for its future needs. In the course of this client study some research was done which may be of wider interest. This short report is intended as a summary of many of the issues that will interact to produce the equilibrium price for coal derived power particularly in relation to gas derived power in Europe.