WHICH POWER TECHNOLOGIES ARE WORTH CONSIDERING AS AN INVESTMENT?

Abstract

The analysis in this paper involves the issues of the specific cost of electric power generation in the particular technologies applied in its production. Therefore, the analysis involves all accessible technologies in power engineering (except hydroelectric power stations): coal-fired power plants applying conventional combustion and CCS (Carbon Capture and Storage) technology in oxy-combustion, nuclear power plants, combined cycle power plants – CCPP, dual-fuel combined cycle power plants – DFCC, wind farms, photovoltaics power plants. The article presents from the economic perspective, that the most beneficial technology is the one in which the cost of power generation is the lowest. It is relative to: specific cost of investment, internal electric load of the power plant, its annual operating time, fuel prices and their variability in time, ratio of the chemical energy of the fuel in its total annual use, for which the purchase of additional CO2 allowances and tariff rates on the use of the environment is not required. The calculations apply the methodology and mathematical modeling of the specific cost of electric power generation valuation in continuous time. The use of continuous time approach provides an options for the analysis of various scenarios regarding variability of energy carriers in time. Moreover, such approach can apply differential calculus for the calculation of the specific cost of electricity production. The analysis of sensitivity of the cost incurred in such production can aid in the assessment of the variability of energy carrier prices in the function of the parameters which influence the overall cost.

Keywords

• power technologies, specific cost of electricity production, ccs, ccpp, dfcc