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I wonder what kind of cost they're using, though. Is it marginal cost (on which solar already wins) or return on capital, and does the cost of capital include t
by byrneseyeview 19y ago
I wonder what kind of cost they're using, though. Is it marginal cost (on which solar already wins) or return on capital, and does the cost of capital include the cost of research?
The only way I can think of actually trying this is to sell future contracts for, say 1% of Google's alt-power production in 2008, 2009, etc., and to declare the project a success iff the value of 1% of the power, indefinitely, X 100, is less than the amount invested in the project.
- ivankirigin 19y agoSolar doesn't win on marginal cost. What are you talking about? The marginal silicon based photovoltaic system has higher $/W than marginal increases in capacity of coal burning plants. Why sell futures? Can't they sell energy or at least shares of companies they are investing in?
- byrneseyeview 19y agoMarginal cost as in the cost of generating X+1 Watts versus X Watts. With coal, you dig for more coal; with solar, you wait for more sunlight. The systems (coal plants, photovoltaic systems) are capital costs.
- ivankirigin 19y agoThen to answer your question, people look to capital costs for the cost of energy. Considering the rate of expansion of energy demand, it is the only number that matters.