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c) What would happen if carbon prices when to $170/tonne? d) How do you think a $170/tonne carbon price would impact electricity prices?

c) What would happen if carbon prices when to $170/tonne? d) How do you think a $170/tonne carbon price would impact electricity prices?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using the following assumptions calculate the marginal cost of both a simple cycle and combined cycle gas generator: Simple Cycle hear rate (GJ/MWh) 10 Simple Cycle Variable O&M ($/MWh) $3.50 Combined Cycle heat rate (GJ/MWh) 7 Combined Cycle Variable O&M ($/MWh) $5.00 Gas Price ($/GJ) $3.00 Tonnes of CO2 per GJ 0.051 Carbon Price ($/Tonne of CO2) $20.00 a) What is the variable cost of a simple cycle and combined cycle plant? b) What do the differences in variable cost suggest about each technology's capacity factor? c) What would happen if carbon prices when to $170/tonne? d) How do you think a $170/tonne carbon price would impact electricity prices?
Transcribed Image Text:Using the following assumptions calculate the marginal cost of both a simple cycle and combined cycle gas generator: Simple Cycle hear rate (GJ/MWh) 10 Simple Cycle Variable O&M ($/MWh) $3.50 Combined Cycle heat rate (GJ/MWh) 7 Combined Cycle Variable O&M ($/MWh) $5.00 Gas Price ($/GJ) $3.00 Tonnes of CO2 per GJ 0.051 Carbon Price ($/Tonne of CO2) $20.00 a) What is the variable cost of a simple cycle and combined cycle plant? b) What do the differences in variable cost suggest about each technology's capacity factor? c) What would happen if carbon prices when to $170/tonne? d) How do you think a $170/tonne carbon price would impact electricity prices?
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