[L12]_WIND ENERGY POLICY Flashcards
ENGY-688
What does a Renewable Energy Policy typically set as long-term targets?
A. Energy storage capacity
B. Renewable energy installation percentages
C. Fossil fuel reduction goals
D. National GDP growth targets
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B. Renewable energy installation percentages
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ENGY-688
Feed-In Tariffs (FiTs) require utilities to purchase all energy generated by wind farms at a regulated price.
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True
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ENGY-688
What is a primary benefit of taxation-based wind energy incentives?
A. Reduces project timelines
B. Encourages complex financial structuring for equity investors
C. Simplifies licensing guidelines
D. Lowers wind energy production costs significantly
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B. Encourages complex financial structuring for equity investors
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ENGY-688
Benefits-Based FiTs consider factors like greenhouse gas emissions reduction, energy security, and (fill in the blank).
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Local economic development
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ENGY-688
The Cap-and-Trade system allows power producers exceeding emission caps to buy rights to emit additional pollution.
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True
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ENGY-688
What does energy security emphasize according to the International Energy Agency (IEA)?
A. High transmission flexibility
B. Competitive pricing, reliable supply, and environmental responsibility
C. Minimizing energy imports
D. Maximizing storage capacity
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B. Competitive pricing, reliable supply, and environmental responsibility
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ENGY-688
Match the demand-side incentive mechanism with its purpose:
1. RE Fund
2. RE Certificates (RECs)
A. Provides financial support to transmission companies for wind energy costs.
B. Allows corporations to purchase renewable energy indirectly.
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1 = A
2 = B
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ENGY-688
Grid flexibility refers to the ability of a power system to respond rapidly to changes in demand or supply.
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True
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ENGY-688
Which is NOT a key goal of licensing guidelines?
A. Reducing lead time and project costs
B. Coordinating with politically connected companies
C. Increasing investor confidence
D. Providing transparency in the approval process
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B. Coordinating with politically connected companies
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ENGY-688
True/False: Avoided Cost of Energy is calculated by determining the marginal generator and variable production costs for each hour.
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True
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ENGY-688
What does the JEDI program evaluate in terms of wind energy projects?
A. Renewable energy policy impact on CO2 reduction
B. Local job creation and economic impacts
C. The balance of energy imports versus exports
D. Cost-effectiveness of turbine designs
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B. Local job creation and economic impacts
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ENGY-688
Which of the following best highlights the difference between Cap-and-Trade and Command-and-Control approaches to managing GHG emissions?
A. Cap-and-Trade allows flexibility in how emissions are reduced, while Command-and-Control mandates specific technologies.
B. Command-and-Control systems are market-driven, whereas Cap-and-Trade relies on governmental price setting.
C. Cap-and-Trade is limited to CO2 emissions, while Command-and-Control applies to all pollutants.
D. Command-and-Control is typically more cost-effective for energy producers than Cap-and-Trade.
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A. Cap-and-Trade allows flexibility in how emissions are reduced, while Command-and-Control mandates specific technologies.
Explanation:
Cap-and-Trade creates an economic market for emissions, letting companies decide whether to reduce emissions or buy rights to emit more. Command-and-Control specifies technologies or standards for compliance, offering less flexibility but ensuring specific outcomes.
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ENGY-688
True/False: The Weighted Average Cost of Capital (WACC) is critical in calculating production-cost-based Feed-In Tariffs (FiTs) because it determines the discount rate for net present value (NPV) calculations.
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True
Explanation:
WACC accounts for the cost of equity and debt financing, ensuring that the tariff reflects the project’s capital structure. Using WACC in NPV calculations ensures that the FiTs are financially viable for developers, covering all costs and delivering a fair return on investment.
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ENGY-688
A wind farm located in a remote area struggles with grid integration due to limited transmission capacity. The system operator requires the farm to install grid-friendly turbines capable of reactive power management and fault ride-through. What additional strategies could help overcome this bottleneck?
A. Invest in battery storage to manage net load fluctuations.
B. Use shorter dispatch schedules and advanced forecasting tools.
C. Coordinate interregional energy transfers to share peaking resources.
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D. All of the above.
Explanation:
Battery storage can smooth out power output, ensuring reliable delivery. Shorter dispatch schedules paired with accurate forecasting reduce operational uncertainty. Interregional transfers enable load balancing across broader areas, reducing the strain on localized grid infrastructure.
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ENGY-688
The Social Cost of Carbon (SCC) estimates the economic damages caused by an additional ton of CO2 emissions. If a wind energy project avoids emitting 500,000 metric tons of CO2 annually, and the SCC is set at $50 per metric ton, what are the annual economic savings from avoided emissions?
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Annual Economic Savings = 500,000-metrictons × 50$/metricton = $25,000,000 annually
Explanation:
This economic savings represents the avoided costs related to health, environmental degradation, and climate change impacts. Policymakers use SCC to justify subsidies or incentives for renewable projects like wind energy. By quantifying these avoided costs, SCC strengthens the argument for investments in clean energy to offset the externalities associated with fossil fuels.
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