Week 4 - Chapter 6

Question 2

What is the heating value commonly referred to as?

Answer 2

Calorific value (CV)

Calorific value is the amount of energy produced per unit of fuel burned.

Question 3

What does the reserve-to-production ratio (R/P Ratio) indicate?

Answer 3

The relationship between proven reserves and annual production

A higher R/P ratio suggests a longer lifespan of resource availability.

Question 4

What term describes the cost advantages that enterprises obtain due to scale of operation?

Answer 4

Unit economies-of-scale

This concept is crucial for understanding cost efficiency in production.

Question 5

What is meant by ‘dispatchable’ in energy production?

Answer 5

Energy that can be generated on demand

Dispatchable resources can be controlled and adjusted to meet load requirements.

Question 6

What does the term ‘spread’ refer to in energy markets?

Answer 6

The difference between two prices

It often refers to the price difference between buying and selling energy.

Question 7

What are dual-fuel generators?

Answer 7

Generators that can run on two different types of fuel

They provide flexibility and reliability in fuel choice.

Question 8

What is coal ash a byproduct of?

Answer 8

Burning coal for energy

Coal ash can contain harmful substances and requires proper disposal.

Question 9

What are nitrogen oxides commonly abbreviated as?

Answer 9

NOx

NOx contributes to air pollution and can cause respiratory issues.

Question 10

What do sulfur oxides refer to in environmental terms?

Answer 10

SOx

SOx emissions are primarily from burning fossil fuels and can lead to acid rain.

Question 11

What are carbon oxides collectively known as?

Answer 11

COx

Includes both carbon monoxide (CO) and carbon dioxide (CO2), significant in climate change discussions.

Question 12

What are particulates in the context of air pollution?

Answer 12

Tiny solid or liquid particles suspended in air

Particulates can originate from various sources, including combustion and industrial processes.

Question 13

What does IGCC stand for?

Answer 13

Integrated gasification combined cycle

A technology that converts carbon-rich materials into gas for cleaner energy production.

Question 14

What is carbon capture and sequestration abbreviated as?

Answer 14

CCS

A process aimed at reducing carbon dioxide emissions from industrial sources.

Question 15

What is the minimum economic unit in energy production?

Answer 15

The smallest output level at which a facility can operate profitably

Important for determining feasibility of energy projects.

Question 16

What type of power plant combines gas and steam turbines?

Answer 16

Combined-cycle power plant

This design increases efficiency by using both gas and steam cycles for electricity generation.

Question 17

What are reciprocating engines commonly used for?

Answer 17

Converting fuel into mechanical energy

They are widely used in power generation and transportation.

Question 18

What are microturbines?

Answer 18

Small combustion turbines used for distributed energy generation

They are efficient and can run on various fuels.

Question 19

What does cogeneration refer to?

Answer 19

Simultaneous production of electricity and useful heat

Increases overall energy efficiency by utilizing waste heat.

Question 20

What is the opportunity cost in economics?

Answer 20

The loss of potential gain from other alternatives when one alternative is chosen

Essential for decision-making and resource allocation.

Question 21

What is a shadow price?

Answer 21

The estimated price for a good or service that is not normally priced in the market

Used in cost-benefit analysis and environmental economics.

Question 22

What does ‘islanding’ refer to in energy systems?

Answer 22

A condition where a portion of the grid continues to operate independently

Often occurs during a grid failure, allowing localized power generation.

Question 23

What is hedging in financial terms?

Answer 23

A risk management strategy used to offset potential losses

Often involves derivatives and is commonly used in energy markets.

Question 24

What are forwards and futures contracts?

Answer 24

Agreements to buy or sell an asset at a future date at a predetermined price

These contracts are widely used in energy trading to manage price risk.

Question 25

What is a tolling arrangement in energy?

Answer 25

An agreement where a power producer is paid for converting fuel into electricity

It allows for flexibility in energy supply and demand management.

Question 26

What does force majeure refer to?

Answer 26

Unforeseeable circumstances that prevent contract fulfillment

Commonly cited in contracts to address natural disasters or other major events.