Clean Energy Technologies – Part 2

This blog post is in continuation of our previous post Clean Energy Technologies Part 1. In the previous post, we discussed about clean energy technology cost structure. Today we would be enhancing the concept further.

The levelized cost of electricity

There are many variables that need to be taken into consideration while working on the cost of producing electricity from non-renewable sources of energy. Things like construction time, electrical output, different cost of investments and operational costs all have to be considered. Widely these costs are divided into two parts the fixed cost and the variable cost. Fixed costs are those costs which are incurred independent of the hours of operation whereas the variable cost depends upon the operating parameters and include fuels and other overheads which have a fluctuating nature of costs.

A point to be noted here is that operation and maintenance costs are calculated on Rupee/MW basis and this is for the fuel based calculations, non fuel costs include outages, repairs and yearly maintenance and other basic annual costs. Also, these costs will also vary widely depending upon the technology involved.  Meaningful economic comparisons of competing energy-generation technologies must capture all of these variables.

Economics of Combined Heat and Power

There are many technologies in use which use the combined heat and power to generate electricity. Although they are renewable sources of energy and are pretty clean. Still the cost implication has to be judged before doing any real work on this front. A practical approach for estimating the electricity generation costs for these plants is to postulate the value of the produced heat that can be subtracted from total construction and operating costs. The remaining costs are the net costs needed for electricity generation.

The costs of acquiring and installing a generating unit will depend on technology, capacity, and several other factors. The direct costs of a CHP system include the installed cost of the equipment, fuel costs, nonfuel operation and maintenance expenses, and other charges imposed by power utilities on customers who decide to install onsite generation systems.

Well these are the factors which should be considered before investing in a clean technology solution for commercial buildings. We think that India can really gain from such efforts. In our country still the majority of power being generated for commercial use is not clean. We have to make efforts to change this. Its for the greater good. India needs sustainable and clean power generation methods which would really keep our country pollution free. We hope you liked our post.

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