A Comeback for old King Coal?

1st July 2006
By Guy Doyle

The introduction of the EU Emission Trading Scheme (ETS) in 2005 has brought about a new and profound uncertainty in the European wholesale electricity market. There is now a cost penalty on carbon-based generation, which is increasing the cost of power generation and promises to shift generation patterns. These additional carbon costs are being passed through in higher power prices, and power generators have seen a surge in their profits.

Under the EU ETS power stat…