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1. Production cost context
The key factor in the competitiveness of alternative solutions is the cost per kilowatt-hour produced. This cost is calculated on the basis of the investment cost of the generating system, its lifespan, the interest rates on any loans taken out, the operating costs associated with maintenance and the primary energy, which is free in the case of solar, wind or wave power, and paid for in the case of fossil or nuclear fuels... Investment and maintenance costs depend largely on the industrial maturity of technological solutions, while fuel costs are subject to the laws of the market and, in particular, to the risk of shortages (as in the case of oil and gas in the 21st century). As we shall see, production costs for systems based on renewable energies have fallen considerably over the past few decades, and are now becoming competitive.
In the case of systems operating...
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Production cost context
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The Ultimate Scientific and Technical Reference