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Explain how the the annual cost per kWh is calculated for alternative power sources including wind, fossil fuels, and nuclear. As part of your discussion, explain why it is important to make comparisons this way.
This question is from Chapter 24: Wind Energy Power Company, Inc: Analyzing a Wind Energy Investment. Hint: See Appendix 24.3.
2.Refer to Exhibit 24.5, Panel A. Which type of energy had the lowest cost per kWh to produce electricity in July 2008?
This question is from Chapter 24: Wind Energy Power Company, Inc: Analyzing a Wind Energy Investment.
a. natural gas
b. coal
c. nuclear
wind turbines
3. The Midwest Price Spike was eventually found to be a failure of what financial risk?
Hint: This question is from the reading about the 10 Biggest Energy Risk Management Disasters.
a. All of the above are correct
b. Market Risk
c. Operational Risk
d. Credit Risk
1. Fossil fuel : for fossil fuel we have to check out energy released by burning certain amount of fuel for example one kg fuel. Then we have to asses cost of one kg fuel. Then multiply it with annual fuel consumption in kg.
2. Similar approach can be made for nuclear energy.
3. Wind energy: first we have to check annual energy generated and revenue generated by selling the energy. Then we have to deduct cost of maintainance, inspection, replacement of breakdown to get annual energy cost per kg.
B) data has not been provided for july 2008. But if we go for present trends, nuclear energy is cheapest to produced electricity. The overall plant setup cost, fuel cost, operational cost, disposal cost if combined together, then nuclear energy is cheapest of all.
C) the main reason behind Midwest gas price rise was the operational risk management failure. The adaptations from older to ANSWER techniques is always mandatory. Also as apartment of National policy, oil prices always keep fluctuating.