Table of Contents
Executive summary
- Introduction
- Levelized cost
- Risk
- Historical costs
- The cost of carbon
- Market distortions
- The cost of power
- The Business Insights 2008 Industry survey
Chapter 1 Introducing the cost of power
- Introduction
- The structure of the report
Chapter 2 Levelized cost: the traditional approach to estimating the cost of power
- Introduction
- Capital costs
- Capacity factor
- Financing capital cost
- Levelized cost of electricity
- Interest, discount rate and present value
Chapter 3 Introducing risk into cost of electricity estimates
- Introduction
- Fuel prices and fuel price volatility
- Fuel price risk
- Portfolio planning theory
Chapter 4 Historical costs of electricity and the technology learning effect
- Introduction
- Historical costs of electricity
- Retail cost and levelized cost
- Technology costs
Chapter 5 CO2 lifecycle emissions and the cost of carbon
- Introduction
- Lifecycle greenhouse gas emissions
- Placing a price on carbon
- Actual carbon costs: the European Trading Scheme
Chapter 6 Factors distorting the price of electricity
- Introduction
- Structural costs
- Grid extension
- Operational costs
- Externalities
- Subsidies
- Fuel subsidies
- Tariff subsidies
- Quotas
- Taxes
Chapter 7 The cost of power
- Introduction
- Levelized cost trends
Chapter 8 Business Insights Executive Survey
- Introduction
- Competitiveness of power generation technologies
- Impact on the competitiveness of renewable energy
- Impact on the uptake of renewable energy
- Changes in the use of fossil fuels
List of Figures
- Figure 2.1: Comparison of capital cost estimates ($/kW), 2003 and 2007
- Figure 2.2: Typical capacity factors for power generating plants
- Figure 2.3: Levelized cost of generation by type ($/MWh), California 2007
- Figure 2.4: Levelized costs as estimated by Vattenfall (€/MWh)
- Figure 2.5: Mean levelized costs from published global figures
(£/MWh)
- Figure 3.6: Average world oil prices ($/barrel), 1989-2008
- Figure 4.7: Annual US photovoltaic module production costs (Cost ($/W),
1970-2005
- Figure 4.8: Global solar cell production (MWp), 1993-2010
- Figure 5.9: Energy payback ratios
- Figure 5.10: Lifetime greenhouse gas emissions for different power
generation technologies (kgCO2/kWh)
- Figure 6.11: Balancing costs for 20% wind penetration and energy storage
(€/MWh)
- Figure 6.12: External costs for various power generation technologies
within the EU (€/MWh)
- Figure 6.13: Fuel subsidies as a percentage of GDP (% of GDP)
- Figure 7.14: Levelized cost comparison, 2003 vs 2007 ($/MWH)
- Figure 7.15: Comparative levelized costs of full range of generating
technologies ($/MWh)
- Figure 8.16: The relative competitiveness of power generation technologies
in 2008 and 2018
- Figure 8.17: How important are the following for the competitiveness of
renewable energy?
- Figure 8.18: How important are the following for the uptake of renewable
energy?
- Figure 8.19: How important are the following to changes in the future use
of fossil fuel for power generation?
- Figure 8.20: In how many years would you expect renewable energy to
contribute half of global electricity generation?
- Figure 8.21: How significant do you consider the proposed hydrogen economy
for future electricity generation?
List of Tables
- Table 2.1: Capital costs of power generating technologies in the US ($/kW)
- Table 2.2: Comparison of capital cost estimates ($/kW), 2003 and 2007
- Table 2.3: Typical capacity factors for power generating plants (%)
- Table 2.4: Present value of $1m as a function of discount rate
- Table 2.5: Levelized cost of generation by type ($/MWh), California 2007
- Table 2.6: Levelized costs as estimated by Vattenfall (€/MWh)
- Table 2.7: Mean levelized costs from published global figures (£/MWh)
- Table 3.8: Average world oil prices ($/barrel), 1989-2008
- Table 3.9: The comparative cost of natural gas for electricity generation
($/107kcals)
- Table 3.10: The comparative cost of steam coal for power generation
($/tonne)
- Table 4.11: The comparative cost of electricity for industry ($/MWh),
1998-2006
- Table 4.12: The comparative cost of electricity for domestic use ($/MWh),
1998-2006
- Table 4.13: Annual US photovoltaic module production costs (Cost ($/W),
1970-2005
- Table 4.14: Global solar cell production (MWp), 1993-2010
- Table 5.15: Energy payback ratios
- Table 5.16: Lifetime greenhouse gas emissions for different power
generation technologies (kgCO2/kWh)
- Table 6.17: Grid extension costs as a function of wind penetration
(€/MWh)
- Table 6.18: Transmission and distribution costs in 2020 associated with
increasing UK renewable contribution above 10% after 2010 (£m/y)
- Table 6.19: Balancing costs for 20% wind penetration and energy storage
(€/MWh)
- Table 6.20: External costs for various power generation technologies
within the EU (€/MWh)
- Table 6.21: Fuel subsidies as a percentage of GDP (% of GDP)
- Table 7.22: Levelized cost comparison, 2003 vs 2007 ($/MWH)
- Table 7.23: Comparative levelized costs of full range of generating
technologies ($/MWh)
- Table 8.24: The relative competitiveness of power generation technologies
in 2005, 2008 and 2018
- Table 8.25: The relative competitiveness of power generation technologies
in 2018 and 2013
- Table 8.26: How important are the following for the competitiveness of
renewable energy?
- Table 8.27: How important are the following for the uptake of renewable
energy?
- Table 8.28: How important are the following to changes in the future use
of fossil fuel for power generation?
- Table 8.29: What is the best way to implement carbon emission controls?
- Table 8.30: What percentage of global electricity production will be
supplied by renewable energy in ten years?
- Table 8.31: In how many years would you expect renewable energy to
contribute half of global electricity generation?
- Table 8.32: How significant do you consider the proposed hydrogen economy
for future electricity generation?
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