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All rights reserved.GoogleYouTubePrivacyContact.Coal and gas prices will more than double within a decade due to climate change and the replacement of existing coal and gas power plants by natural gas and renewable energy, says a report by the National Energy Board. In its report the NEB projects that the price of coal-generated electricity will skyrocket, soaring from $42 per megawatt hour to $95 per megawatt hour in 2040. Natural gas, which is derived from the tarsands, will get pricier too, from $26 per megawatt hour to $70 per megawatt hour in 2040. Story continues below advertisement Read more: Canadian energy minister vows to focus on reducing greenhouse gas emissions Opinion: The era of the externalized price is over Read more: How natural gas will provide energy security to Canada Canada's natural gas production will grow but not at a rate that will keep up with demand as the economy expands, the report says. Natural gas exports will grow as a result, but will not be enough to keep pace with the new appetite for gas in the United States and Asia. "If trends continue, the natural gas price will increase from $26 per megawatt hour today to $70 per megawatt hour in 2040, despite a growth in supply," says the report, released this week. Canada's domestic coal and natural gas production will be able to meet the needs of the economy, which is expected to grow by 3.7 per cent in 2040, the report says. Natural gas and coal use in Canada is expected to drop by 2.8 per cent a year from 2012 to 2040, partly because of rising competition from renewable energy. In the NEB's scenarios, the price of renewable power will go from $40 per megawatt hour in 2012 to $75 per megawatt hour in 2040. "Renewables can be a source of significant competitive advantage, particularly for large-scale projects," the report says. "Increases in the costs of natural gas generation, due in part to carbon pricing, could give them added appeal. In effect, carbon pricing would appear to drive up the price of fossil fuel-based electricity generation, making it more expensive to produce than renewable generation." The NEB's report shows that by the year 2040, Canada will have

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