Energy economics

Question 1

What does LCOE stand for?

Answer 1

The levelized cost of energy

Question 2

What is The levelized cost of electricity (LCOE)?

Answer 2

A measure of the average net present cost of electricity generation for a generator over its lifetime. It is used for investment planning and to compare different methods of electricity generation on a consistent basis. (What to invest in)

Question 3

LCOE unit

Answer 3

YYYYU$$/Mwh

alltså med dagens penningvärde

“constant dollars”, utan inflation

Question 4

OPEX_fix

Answer 4

yearly operation & maintenance cost per installed capacity ($/kW)

Question 5

OPEX_var

Answer 5

operation & maintenance cost including fuel costs ($/kWh)

Question 6

CRF

Answer 6

Capital recovery factor
A formula used to find the equal annual payment for a loan, given the interest rate and the No. of payment periods (typically the economic lifetime of technology used)

Question 7

fuel cost =

Answer 7

= net Heat rate * price of fuel (kJ/kWh * $/kJ) = [$/kWh]

Question 8

What is r?

Answer 8

The discount rate

Question 9

Scarcity rent

Answer 9

Why is price not always the same as cost?
Cost = what you pay
Price = what it “should” cost
Ex. why is houses cheaper on the countryside

Question 10

What is elasticity demand curve?

Answer 10

Att demandet följer priset

Question 11

What is unitary elasticity?

Answer 11

Ed = 1, when price increase with more than 10 %, demand decrease with more than 10 %

Question 12

What is an inelastic demand curve?

Answer 12

Demand doesnt necissary shrink when price increases. The extra is called scarcity rent.

Ex. energy crisis

Question 13

Oppurtunity cost

Answer 13

cost of using an input instead of the other

= return on best forgone option- return on chosen option