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(e) Dual-firing

When the sharp increase in fuel oil prices occurred

during the energy crisis, many countries suddenly realised

that a total dependence on fuel oil was very risky and

expensive. For this reason, many countries are

diversifying from dependence on one type of fuel by

introducing and developing different types of energy

sources within their own capabilities. These include the

further development of potential hydro power and the

installation of more nuclear power plants.

However, whilst a number of countries appear to be

diversifying successfully, many others, and in particular

the developing countries, are having considerable

difficulty in doing so. Nuclear power, which once was

the hope of the future, has turned out to be so expensive

that it is often outside the financial capability of a

developing country. Furthermore hydro power has proved

to be possible only in a small number of countries in

which the geographical situation permits such development.

Thus in many countries, the only means of diversifying

from total dependence on fuel oil is to utilise a

substantial amount of coal for electricity production.

The total proven coal reserves in the world are

sufficient for electricity generation for many hundreds of

years and whilst many may not be ideally suited for early

development because of conservationist pressures, environmental factors or pure economic reasons the current

high price of fuel relative to coal prices suggests that it

would generally be favourable to diversify into coal-fired

generation.

/On

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