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Sinking commodities prices make renewables less competitive

Prices for commodities like coal, oil, and natural gas have decreased tremendously since the end of the summer. Oil has fallen from a high of $150 in early summer to below $60, coking coal producers BHP Billiton and Rio Tinto are expecting to cut contract prices by 33% by April 2009, and NYMEX natural gas futures have fallen from over $13 in July to roughly $7 in late November. As prices for traditional power plant fuels fall, the relative cost of renewable energy increases, making solar, wind, and biofuels like ethanol much less attractive.

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