Economic Pricing (III)

Question 1

Costing GHG reduction (Abatement)

Answer 1

Step 1 : Clauc;ate the annualized LCC per unit of service for two technologies providing identical service

Exp. LCC for electric cra nad gas car, both have the same size and usig 15,000 km / yr

Step 2: Calculate the direct and indirect annual GHG emissions pf each.

Step 3: Divide difference un annualized LCC by difference in annual GHG emission to gove cost of GHG reduced = $ / tCO2

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

The potential forst law efficiency gains from 100 % adoption of technologiest with lowest LCC

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