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Any more references here? It looks like you just mean the price for natural gas futures is $0.03/kWh. I am hesitant to believe that includes production and tran
by jakswa 12y ago
Any more references here? It looks like you just mean the price for natural gas futures is $0.03/kWh. I am hesitant to believe that includes production and transport. In addition, are you including the efficiency at which natural gas is converted to electricity?
- pstrateman 12y agoI'm dividing by 0.3 to account for the efficiency of natural gas turbines. (In reality they're higher at around 35-45%) If you assume a 100% efficient natural gas plant the cost is $0.00983/kWh (100% efficiency is of course nonsense though). At 30% efficiency the marginal cost is $0.0327/kWh, distribution usually costs around $0.01-0.02/kWh. This leads to a grand total margin cost of $0.0427-0.0527/kWh. DoE estimates from 2012 show $0.0189/kWh in fixed costs. So a combined grand total of $0.06-0.07/kWh.
- refurb 12y agoWhat about capital costs?
- pstrateman 12y ago"DoE estimates from 2012 show $0.0189/kWh in fixed costs." That includes capital costs.
- refurb 12y agoFixed costs =/= capital costs. Fixed costs are the reoccurring costs that arise regardless of production. You can build a plant with free money, but you still have fixed costs.
- pstrateman 12y agoSorry I meant to say that the metric I called fixed costs is actually fixed and capital costs. Fixed costs alone are ~$0.002/kWh...
- jschwartzi 12y agoYour marginal cost is about what I'm paying for electricity.