The Week in Alt Fuels: The price of plugging in
Shore power promises cleaner air at ports and lower emissions at berth. But from Europe to China to the US, different pricing models make the cost of plugging in far less straightforward than it sounds. Shore power sounds simple. Ships plug into the grid and switch off their auxiliary engines, cutting emissions at berth. But ...
Shore power, a method of reducing emissions at ports by allowing ships to plug into the grid and switch off auxiliary engines, presents a complex cost structure due to varying pricing models worldwide. Electricity expenses constitute the majority of these costs, accounting for 80-85% of shore power connection fees. For example, at Portsmouth Port, commercial electricity prices averaged 25.1 pence per kilowatt-hour (UK), compared to lower rates in Germany (16.8p/kWh) and France (10.6p/kWh).
In addition to electricity costs, ports often include grid access charges, capacity charges, and taxes in their electricity bills. These factors can lead to significant disparities in costs depending on the port of docking. In the United States, the Port of Los Angeles follows a distinct pricing model, offering a dedicated Alternative Maritime Power tariff separate from general commercial electricity tariffs.
This arrangement helps clarify the pricing structure for vessels utilizing shore power. Similarly, in Europe, various ports publish their shore power tariffs, with rates ranging from €0.28/kWh to €0.65/kWh. Despite these differences, the overall goal remains the same: to make shore power a commercially attractive alternative to conventional onboard fuel sources, thereby cutting emissions at berth.
However, the complexity of pricing models and the lack of standardization across ports pose challenges for ship operators in evaluating the true cost-effectiveness of shore power.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.