Electricity pricing

Geothermal gradient of resource, °C/km Breakeven electricity price, /kWh Cost of thermal energy, /GJ... 

Heat Pumps. A heat pump is a refrigeration system that raises heat to a useful level. The most common appHcation is the vapor recompression system for evaporation (qv) (Fig. 14). Its appHcation hinges primarily on low cost power relative to the alternative heating media. If electricity price per unit energy is less than 1.5 times the cost of the heating medium, it merits a close look. This tends to occur when electricity is generated from a cheaper fuel (coal) or when hydroelectric power is available. 

A brief and simplified description of how electricity price may be determined is given in Appendix B, giving some comparisons between different basic plants. We also describe there how the economics of a new plant may be affected by the imposition of an extra carbon tax associated with the amount of carbon dioxide produced. 

After allowing for the performance penalties arising from the CO2 removal, Lozza and Chiesa estimated an efficiency of 46.1%, for a maximum gas turbine temperature of 1641 K and a pressure ratio of 15 (compared with the basic CCGT plant efficiency of 56.1%). They concluded that the plant cannot compete, in terms of electricity price, with a semi-closed combined cycle with CO2 removal (Cycle A2). 

Fig. 8.28. Electricity price variation with carbon tax for (i) IGCC plant and (ii) IGCC plant with extra shift and COi removal (after Chic.sa and Consonni l.3 ).

The method is based on relating electricity price to both the capital related cost and the recurrent cost of production (fuel and maintenance of plant) ... 

Fig. B.5. Effect of carbon dioxide lax on electricity price for a combined cycle gas turbine plant.

Here of the cost of conserving a kilowatt hour is much less than the typical residential electricity price 0.08/kWh. 

In these restructured electric markets, prices will be determined more by market forces and less by regulatory proceedings. To some, introducing competition will promote more efficient markets, providing the proper financial incentives for firms to enter or leave the industiy. In this way, consumers will benefit from lower production costs and, hcncc, reduced electricity prices. To others, restructuring will increase electricity prices for some customers, sacrifice the current environmental and social benefits, and jeopardize system reliability of the status quo. 

Unpredictable movements in the price level are uncommon in energy markets. The magnitudes of these price shocks can be substantial 1973 and 1979 oil price shocks, electricity price swings in June 1998, and 2000 oil price increases exemplify the potential magnitudes of these price fluctuations. Energy price dynamics usually consist of three components deterministic part, seasonal and cyclical influences, and noise. In a market situation with no demand or sup-... 

If the hydrogen is released into the atmosphere, a conversion to GDE will be profitable down to an electricity price level of 0.025 euro kWh-1. In general, it can be said that a conversion to GDE cathodes will be the more interesting for all applications the higher the electricity price is above this lower limit of 0.025 euro kWh-1. 

At present the UK electricity price varies every few hours during the day. A typical price distribution over a year is shown in Fig. 20.1. This variation in price exceeds a factor of ten and so clearly dramatically affects the economics of chlorine production. In the next few years this pricing structure is expected to change, but it is unlikely that it will become much more stable. A combination of this variable electricity price and... 

In this case the model is run in off-line mode and used to search for the raw and recycle brine flows which minimise the cost of chlorine production for a whole range of electricity prices and loads. Optimisation is simplified by the fact that the brine price is effectively fixed. 

Figure 12.4 shows the composition of liquid hydrogen delivery costs. It can be seen that the electricity prices and costs clearly have the highest impacts on the delivery costs, while the influence of delivery distance is much smaller. 

Figure 12.7 illustrates the costs of the various transport options and capacities as a function of transport volume and distance. For LH2 trailer transport, the liquefaction costs are also included, and have been calculated for an electricity price of 4.5 and 8 ct/kWhei, respectively. 

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