2 ms·
I briefly researched this and it sounds like accounting shenanigans but I am open being corrected. This analysis "Levelised cost of energy – A theoretical just
by haltingproblem 6y ago
I briefly researched this and it sounds like accounting shenanigans but I am open being corrected.
This analysis "Levelised cost of energy – A theoretical justification and critical assessment
"[1] says that:
"The weaknesses of the LCOE are found to centre on discount rate, inflation effects and the sensitivity of results to uncertainty in future commodity costs. These weaknesses are explored in the context of comparing combined cycle gas fired generation and offshore wind in the UK, based on publicly available cost measures. It is found that with variability of future fuel gas prices, and a Monte Carlo approach to modelling LCOE, the range of LCOE for CCGT is much broader in comparison to the LCOE of offshore wind. It is urged that explicit account be taken of the areas of weakness in future use of LCOE."
Solar and Wind have high initial costs and lower operating (variable) costs. Since the variable costs around maintenance suddenly be slashed by 50% when they dont have inputs like fuel (coal, gas,...)
I saw another article recently of how Wind was more expensive as the wind companies which were LLCs would go out of business and saddle the local government or state with the disposal costs for the useless windmills.
[1] https://www.sciencedirect.com/science/article/pii/S0301421518306645 https://www.sciencedirect.com/science/article/pii/S030142151...