Cătălin Stancu, Associated Senior Expert at Horváth: You need many units, so that the production market is super fragmented, if possible, and not dominated by monopolies, for the simple reason that this is the only mechanism to ensure price optimization.
♦ While the cost of producing 1 MWh of energy in a wind power plant reached 43 euros/MWh, the same MWh, but produced by a nuclear power plant, has a cost that starts from 136 euros/MWh, but can reach up to 490 euros/MWh, depending on several factors ♦ It gets a price of about 103 euros/MWh, as it was the average spot in Romania last year ♦ From this artitmetic it results in the need to accelerate the investments in renewable, which have the shortest time, not for reasons that are of sustainability, draws the attention of Cătălin Stancu, Associated Senior Expert to Horváth.
There is an indicator that all investors in energy production look before taking any step, and this is called LCOE, Levelized Cost of Energy. «Levelized Cost of Electricity (LCOE) or the cost of generating electricity represents, from a mathematical point of view, the ratio of all the costs associated with the boiler, for the entire life, and the total amount of electricity generated by it. In other words, LCO is the cost paid to obtain a unit of electricity (KWH or MWh). Both the respective technology is more attractive for investors, because, to make a profit, LCOs must be lower than the sale price of electricity. If throughout the project, the production costs for each MWH are lower than the average market price, then the investment is worth it. And the lower the costs than the market average, the more appetizing the investment. This calculation has even more its purpose in the context in which both Europe and Romania, in its turn, have a production capacity deficit, so that all eyes are on the technologies that have the lowest cost and, very important, the lowest period of commissioning.
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