Economic Pricing (III)

Question 1

Costing GHG reduction (Abatement) Goal

Answer 1

Calculate the cost of reducing GHG emissions by comparing two technologies providing the same service

Question 2

Problems with McKinsey type analizys

Answer 2

Qiality of service is assume identical

Risk is assumed identical
Exp. Long payback investemnt and new technologies aee higher invenstemnt and failure risk.

Question 3

Intangible cost (Definition)

Answer 3

Incorporating quality and risk difference, usually cause higher expected cost.

Question 4

Direct Rebound (Definition)

Answer 4

Increased efficiency that lowest the operating cost of an energy service and stimulates an increase demand for it

Question 5

Indirect Rebound (Definition)

Answer 5

If energy efficiency investment is profitable it increase income and lowest production cost- both which can increase enrgv used.

Question 6

Rebound effect

Answer 6

Another challenge for energy efficiency, standard energy efficiency analysis ignores rebound effects

Includes Direct rebound and Indirect Rebound

Question 7

Demand of energy service

Answer 7

Rising income, shifting consumer preference and innovations that in part benefit from efficiency gains.

Question 8

Technical energy efficiency potential

Answer 8

There are fisrt law efficiency gains available from 100 % adoption of most efficient technologies

Question 9

Economic energy efficiency potential

Answer 9

Adoption of technologies with lowest LCC

Refers tot he amount of energy savings that can be achieved cost-effective, considering current market conditions, without external incentives or subsidies.

Question 10

Dispatchable (Definition)

Answer 10

Electricity can be generated when desired
Exp. large hydro with reservoir, gas turbine)

Question 11

Non-Dispatchable (Definition)

Answer 11

Electricity generator subject to nature’s variability.
Exp. Wind, Solar, run-of-river

Question 12

Compare renewables options

Answer 12

By life-cycle cost of electricity (LCOE). This method indicates that there is no extra value to dispachable in comparison to non-dispachable, yeat dispachable are more valuable.

Question 13

Two methods to account for dispatchability when comparing options

Answer 13

1. Incorporate energy storage costs for non-dispatchable (wind solar) when calculate worth LCOE, and then compare them to dispatchable

2.Track the “ market value” of each KWh from dispatchable to non-dispatchable to calculate net benefot of each

Question 14

Duck Curve

Answer 14

Duck curve shows the imbalance between electricity demand and supply thought-out the day, especially with solar energy usage.

The duck curve highlights the need for energy storage or a flexible grid system to effectively balance supply and demand efficiently.

Question 15

Abatement (Definition)

Answer 15

Reducing the levels or intensity of harmful pollutants or GHG

Question 16

Calculate GHG Reduction Cost (Abatement)

Answer 16

Calculate Annualized LCC for both technologies(Exp. Gas car vs Electric Car)

Identify both direct and indirect GHG emission, for bot technologies

Calculate Cost of GHG Reduction

Results in $ / tCO2