Technical Aspects of Energy Systems
Techno-economic analysis
Two very important factors in energy decisions are technology and economics.
Many energy technologies “work”. That is their technology is reliable, but they may be too expensive to compete with other technologies.
- Is the technology mature and reliable enough to deploy at a large scale?
Levelized Cost
One way of comparing energy prices is to divide the initial and recurring costs by the amount of energy delivered.
This gives you a cost per unit of energy that can be compared.
Economic Dispatch
It is very common in the electricity sector to buy electricity from generators from cheapest to most expensive until the need is met.
Building Costs
A rule of thumb for many business buildings is that energy costs $3/square foot per year, rent costs $30, and salary costs $300.
Energy is a small contribution to total expenses and may not get the attention of building managers.
Environmental Impact
Policy makers are also considering the impact of energy technologies on the environment.
Important questions are
- What effects does the system have on the environment?
- What are the effects of the competing or status-quo system on the environment?
Pollutants include
- Carbon emissions
- Toxic gases, liquids, and solids
There are also wildlife impacts.
Ecosystem Services
Ecosystem Services is an attempt to place an economic value on things (air, water) provided by the ecosystem.
With an economic value, environmental concerns could be added to a techno-economic analysis.
Stakeholders
Stakeholders are people who have an interest in a decision.
- Asset owners
- Business owners
- Community members
- Governments
- Regulators
Perspectives or Lenses
- Technology
- Environment
- Economics
- Stranded Assets
Contested Norms
- How much should we invest in the environment?
- What should the discount rate (the value we give money in the future) be?
- What is the role of the government in providing support to energy technologies?