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Costs of electricity generation: System costs matter

From dbresearch.com

Ahead of the phase-out of nuclear energy in Germany, the costs of electricity generation were debated again. Often, however, no distinction is made as to which specific costs are meant. There should be a distinction among (at least) three types of electricity generation costs: marginal costs, levelized costs of electricity, and system costs. Marginal costs are the costs of an additional kilowatt-hour (kWh) of electricity from an existing traditional power plant or a renewable energy (RE) plant. Weather-dependent renewables are exceptionally cheap with marginal costs close to zero. Existing nuclear power plants ... (full story)

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  • Category: Fundamental Analysis