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Politics : Foreign Affairs Discussion Group

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To: Katelew who wrote (252668)12/30/2007 5:48:57 PM
From: Bearcatbob  Read Replies (3) of 281500
 
Katelew,

I understand the point you are trying to make. Here is the problem I have with your scenario. First, I do not believe the energy density of sun light is sufficient at any conversion efficiency to produce surplus power from a large building. Now, there can well be a savings in that the draw from the grid can be reduced. That reduction is cash for calculation on ROI. Next, back in the days when I used to do those calculations the key parameter was the time value of money. Basically any revenues in the out year (greater than 10) were not meaningful.

The next aspect of consideration is the investment value of money. I read Chris to say once the investment cost is paid off it is all gravy. Well in economics that is not correct. The investment money would have been earning money if nothing else at bank interest rates. So - even if the base investment has been recovered - the system could still be loosing money.

Now I think it is a good idea to subsidize alternate energies - the question is how. I simply want people to use real numbers when they discuss the issue.

One last thing - the amoratization of capital is one of the major costs of oil shale or coal gasification projects.

Bob
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