Electricity Costs and Economics

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• Electricity Costs and Economics

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Summary

• Finding the optimum balance between renewable and
  conventional power generation in a
  carbon-constrained world. Intelligent comparison
  of the top resources available, including Lazard,
  Decc, EIA, IEA, IRENA, and Eurostat.
• Electricity Costs and Economics 2015 to 2025 -
  Electricity is the most important energy source
  in the modern age but also the most ephemeral, a
  source that must be consumed as fast as it is
  produced.
• This makes modeling the economics of electricity
• production more complex than carrying out the
  same
• exercise for other products. Accurate modeling is
  
• important because it forms the basis for future
• investment decisions.

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• In the electricity sector two fundamental
  yardsticks are used for cost comparison, capital
  cost and the levelized cost of electricity.
• The latter is a lifecycle cost analysis of a
  power plant that uses assumptions about the
  future value of money to convert all future costs
  and revenues into current prices.
• This model is widely used in the power industry
  but has some significant failings, particularly
  in its ability to handle risk. Even so these two
  measures, together, are the first consulted when
  power sector investment and planning decisions
  are to be made.

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• Production of electricity has always involved an
  element of risk but this has been extended, and
  in some cases magnified by the introduction of
  liberalized electricity markets.
• One big source of risk is fuel price risk. If an
  investment is made today based on a predicted
  cost of natural gas that turns out to be wildly
  in error because prices soar, as has happened
  during the past decade, then that investment will
  be in danger of failing to be economical to
  operate.
• Therefore some measure of the risk of fuel price
  volatility should be included in any economic
  model. Other risks arise where large
• capital investment is required in untested
  technology.
• Meanwhile the liberalized market has introduced
• new types of risk more often associated with
• financial markets.

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• The power sector still remains an attractive area
  for investment but investors are now more
  cautious than previously.
• Global warming continues to be a dominant theme
  but alongside that there is a new pragmatism
  about fossil fuel combustion which will continue
  to dominate the power sector for another
  generation at least.
• Meanwhile renewable sources of generation
  continue to advance, led principally by wind
  power but with solar capacity growing rapidly
• too, though from a small base.

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Key features of this report

• Analysis of power generation costs concepts,
  drivers and components.
• Assessment of electricity costs for different
  technologies in terms of the two fundamental
  yardsticks used for cost comparison, capital cost
  and the levelized cost of electricity.
• Insight relating to the most innovative
  technologies and potential areas of opportunity
  for manufacturers.
• Examination of the key power generation
  technologies costs.
• Identification of the key trends shaping the
  market,
• as well as an evaluation of emerging trends that
• will drive innovation moving forward.

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Key benefits from reading this report

• Realize up to date competitive intelligence
  through a comprehensive power cost analysis in
  electricity power generation markets.
• Assess power generation costs and analysis
  including capital costs, overnight costs,
  levelized costs and risk analysis.
• Identify which key trends will offer the greatest
  growth potential and learn which technology
  trends are likely to allow greater market impact.
• Compare how carbon costs will effect the industry
  in direct comparisons or renewable and
  conventional technologies using financial and
  life cycle analysis.
• Quantify structural costs of grid extension, the
• effect of drivers, legislation and tariffs,
• installation costs, and the cost of
  electricity.

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Why buy Electricity Costs and Economics 2015 to
2025

• To utilise in-depth assessment and analysis of
  the current and future
  technological and market state of power, carried
  out by an industry expert with 30
  years in the power generation industry.
• Use cutting edge information and data.
• Use the highest level of research carried out.
  expert analysis to say what is
  happening in the market and what will happen
  next.
• Have the 'what if' questions answered.
• Save time and money by having top quality
  research
• done for you at a low cost.

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Full Report Electricity Costs and Economics

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