Coal vs Renewables – The Financial Argument
New investment and technological advances have seen massive falls in the price of renewables versus non-renewable sources of energy like coal in recent years. Renewables are now cheaper than coal, and the price difference will continue to increase in the coming years.
Source: World Bank Group, Delivering Affordable, Sustainable and Reliable Power to Papua New Guineans, p. 7
Our research found that Mayur’s price claims that it submitted to PNG Power as part of its application for a PPA unrealistically cheap.
If PNG Power signs an agreement with Mayur Resources for the Lae coal power plant – it would not only be more expensive than renewable power; it would also likely lock the power price for 25 years. This would make it more expensive relative to the alternatives in future years.
PNG should avoid committing to coal as coal is more expensive than renewables now, and the gap is likely to grow in the coming decades.