Australian coal burned in the Persian Gulf

reportonbusiness.com: Skyward oil stokes a coal-fired future

The Kyoto Protocol, incidentally, classifies the Gulf states as developing countries – meaning that they are under no obligation, oil revenues notwithstanding, to reduce CO2 emissions. They have opted for coal for a single compelling reason: cost. They can produce a megawatt-hour of electricity using Australian coal, Der Spiegel calculates, for $17.49 (U.S.). Using natural gas, the cost rises to $41.34. Using oil, the cost rises further to $79.50. At the same time, they can sell their oil on the global market for something approaching (or occasionally exceeding) $140 a barrel.

One of the ironic differences between Germany and the Gulf states, Der Spiegel observes, is the absence of solar energy investment “in the sun-baked Gulf states.” Germany produced 1,300 megawatts from solar installations in 2007; the Gulf states combined produced 36 megawatts. As impressive as its commitment to solar power appears, though, Germany has its work cut out. It has promised to generate most of its electricity by renewable energies (largely wind and solar) by 2020 – when it will phase out its nuclear power. Germany has thus opted for the world's most expensive electrical power even as other countries simultaneously opt for the cheapest.