External Costs

Phone 4 Energy

Ultimate Guide to Power Efficiency

Get Instant Access

Electricity and heat generation costs of conventional energy systems such as fossil or nuclear power plants are also calculated with the formulae described above. Besides the investment costs for the power plant, fuel costs and operation and maintenance costs, there are further external costs that may be only partly covered or not covered at all by the plant operators.

Besides government subsidies and government-financed research, development and disposal, external costs mainly comprise costs for damage to the environment and public health caused by the power plant. The electricity or heat price usually does not contain these external costs. This distorts the

Figure 6.4 Crude Oil Prices Given in Actual Prices and Adjusted for

Inflation and Exchange Rate (Shown in $, $2000 and €2000,

Figure 6.4 Crude Oil Prices Given in Actual Prices and Adjusted for

Inflation and Exchange Rate (Shown in $, $2000 and €2000,

1 barrel = 158.7579 litre)

competition between renewable and conventional energy systems, because external costs of renewable energy systems are usually much lower. However, the estimation of all external costs is very difficult and often highly controversial, because many assumptions have to be made.

Was this article helpful?

0 0
Solar Power Sensation V2

Solar Power Sensation V2

This is a product all about solar power. Within this product you will get 24 videos, 5 guides, reviews and much more. This product is great for affiliate marketers who is trying to market products all about alternative energy.

Get My Free Ebook


Post a comment