TRUE OF FALSE Clearly state whether the following sentences are TRUE or FALSE. B
ID: 2291838 • Letter: T
Question
TRUE OF FALSE
Clearly state whether the following sentences are TRUE or FALSE. Briefly justify your answer and explain why or why not (one or two sentences, e.g., provide context for the statement, or explain an example or a counter-example). You must provide an explanation to receive credit a. The LCOE compares the marginal cost of generation across different generation tech- nologies b. Consider a load duration curve that goes through the point 10.000M and 25%. This means that demand in this market is exactly 10,000 Mw 25% of the time.Explanation / Answer
a.
TRUE
Suppose that we were comparing two power plants, both of which were selling electricity into the same market at the same price. One power plant has high fixed costs but low variable costs. The other has low variable costs but high fixed costs. Both had the same expected operational life and the same capacity. Which plant would be more profitable? Since both plants would be facing the same market price for the electricity that they sell, the more profitable plant would be the one that had the lower average cost per Megawatt-hour of electricity over its entire lifetime.
The Levelized Cost of Energy (LCOE) can be used to help evaluate problems like this one, and is one of the most commonly used metrics for assessing the financial viability of energy projects. It is used particularly often in situations like the one we just discussed - comparing the lifetime costs of different technologies for electric power generation. The LCOE can, however, be applied to other energy projects as well.
b.
FALSE
This means that demand is 10,000 and the revenue is changed/ increased by 25% at that duration/time.
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