Mish's Global Economic Trend Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Haim R. Branisteanu who wrote (9301)	7/15/2004 11:52:16 AM
From: yard_man	Read Replies (1) of 116555

300,000/MW x 1 MW / 1000 kw == 300/kw 300/kw with a production cost of 1/kWh sounds like a dream But I think they are lying, Haim. How would they be lying?? there are lots of ways -- obviously, transmission/distribution costs from the ocean bed aren't cheap -- if they neglect these to compare to conventional stations they can get a low number ... Maintenance ain't gonna be easy either -- they can understate those costs -- might be considerable Finally there is the life of the equipment -- we generally depreciate coal plants over 30 years -- with the knowledge that most will be much longer-lived If it were truly 300/kw -- that would be great -- our recent estimates for coal plants come in at around 1750/kw for a plant installed in 2010 But you also have the problem of scale -- there is currently in most developed countries a large investment already sunk in transmission and distribution ... that technology won't scale -- it may make sense for someone individually -- a ways away from the existing T&D infrastructure with a relatively large individual need -- I bet that per kw number goes up dramatically as you move down from 1 MW ..

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next