Clearly the cost of the new and renewable sources is higher than that of the conventional and fossil sources. However, there are two important considerations to note. One is that the technology for the traditional sources is relatively mature and no major decreases in costs are expected. Conversely, for the renewable sources, costs have come down sharply in the last couple of decades and this trend shows every sign of continuing. The other consideration is that the clean/non-polluting nature of renewables is not recognized in the economic equation. The logical question is: if the costing rules were changed to recognize external and environmental effects, would such sources really compete? Figure 9. Power Costs Without External Effects Considered Consequences of Acquisition and Use of Energy The acquisition and consumption of the vast quantity of energy that supports our industrialized civilization are not without side effects. Indeed, the extent to which these side effects damage the environment is now the greatest concern of the energy community. The second of the 14 major conclusions from the 15th World Energy Congress [10] was: “The majority of the world's population is faced with actual or potential deterioration of the environment - local, regional and global. The first impacts with immediate distress. The second can be a cause of major transfrontier tension. The third is subject to on-going international debate.” External and Environmental Factors The acquisition and use of energy is a complicated process involving many steps. These steps include mining, drilling processing and transporting the source materials and converting the source material to usable energy. The direct cost of these steps is accounted for; however, there are side effects of some of these steps which are not. Such effects are generally termed external and include items such as: • Subsidies to particular energy sources
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