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Power Plants: Characteristics and Costs

Order Code RL34746 Power Plants: Characteristics and CostsNovember 13, 2008 Stan KaplanSpecialist in Energy and Environmental PolicyResources, Science, and Industry DivisionPower Plants: Costs and CharacteristicsSummaryThis report analyzes the factors that determine the cost of electricity from newpower plants. These factors including construction Costs , fuel expense,environmental regulations, and financing Costs can all be affected by governmentenergy, environmental, and economic policies. Government decisions to influence,or not influence, these factors can largely determine the kind of Power plants that arebuilt in the future. For example, government policies aimed at reducing the cost ofconstructing Power plants could especially benefit nuclear plants, which are costlyto build.

turn nuclear power from a high cost technology to a relatively low cost option.! The natural gas-fired combined cycle power plant, the most commonly built type of large natural gas plant, is a competitive generating technology under a wide variety of assumptions for fuel price, construction cost, government incentives, and carbon controls.

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