In a missive titled “White Paper: Financial Risks of Investments in Coal,” As You Sow concludes that coal is becoming an increasingly risky investment with each passing day. The fracking boom and the up-and-coming renewable energy sector are quickly superseding King Coal's empire as a source of power generation, As You Sow concludes in the report.
As You Sow chocks up King Coal's ongoing demise to five factors, quoting straight from the report:
1. Increasing capital costs for environmental controls at existing coal plants and uncertainty about future regulatory compliance costs
2. Declining prices for natural gas, a driver of electric power prices in competitive markets
3. Upward price pressures and price volatility of coal
4. High construction costs for new coal plants and unknown costs to implement carbon capture and storage
5. Increasing competitiveness of renewable generation resources