energy Flashcards
what are the main production factors?
labour, capital, land, technology, energy and materials
what is energy and capital/labour in the short run?
they are complementary in the short run
what is energy and capital/labour in the long run
they are substitutes in the long ru
what is the organic energy economy
it is based on plant, animal and human energy
what is primary energy?
as found in nature, it is not transformed . it is extracted or captured directly from natural resources
what are examples of primary energy?
crude oil, natural gas, coal, solar, wind, hydro, nuclear, geothermal, biomass
what is secondary energy?
they are manufactured fuels. all sources of energy that result from the transformation of primary sources
what are examples of secondary energy
refined oil products such as petrol or kerosene. electricity generated from primary energy sources
what are the natural units of measure?
the usual way the quantify of a fuel is measured ie oil is barrels or tonnes, natural gas is cubic metres
what is energy units?
the energy content of a fuel, there are many units in use such as calories, joules, MWH
what type of unit is energy?
it is a stock
what type of unit is power?
it is a flow over time
what is capacity?
capacity is the ability to provide a flow of power over time
what is the overnight cost
overnight capacity cost is the cost of buying capacity
what are the vertically independent activities in the electricity industry?
generation, transmission, distribution, supply
what is the supply activity in the electricity industry?
it is the sale of electricity to end users. it involves the metering, billing, purchasing and contracting
what is the generation activity in the electricity industry?
it is the production and conversion of electric energy
what is the transmission activity in the electricity industry?
it is the transmission of electricity at high voltages over long distances
what is the distribution activity in the electricity industry?
it is the transportation of low voltage electricity in local networks. it consists of overhead lines, cables , switchgears, transformers, control systems and meteres
what are the characteristics of the electricity industry?
it is capital intensive, it has large sunkn costs, it has a large economic life, it is a network industry (vertically integrated - upstream generation transmission, downstream reticulation and delivery) , demand and supply must match in real time
what are the characteristics of the product of the electricity industry?
it is derived demand as people want electricity for its services , non storable commodity (storage is too expensive) , homogenous product, a flexible and clean energy source (at point on consumption)
what are the characteristics of electricity?
it is a nonstorable commodity, demand can vary sharply over time, demand is price inelastic in the short run, supply is very inelastic at high demand levels, power stations can fail suddenly, most stations can only change output slowly
what are the characteristics of the electricity system?
physical laws govern network operations in real time to maintain frequency, voltage and stability of the network
system operators must carry reserves to meet unexpected demand
network congestion may limit geographic expanse of system and competition
loop flow introduces complex interactions between generators
what are the cost characteristics of electricity generation technologies at base load?
there is a high capital cost and a low variable cost eg nuclear, hydro , wind and solar