Electric Generating Costs: A Primer
Production Costs, Levelized Costs
By Institute for Energy Research —— Bio and Archives--August 23, 2012
Global Warming-Energy-Environment | Comments | Back To Full Article
The cost of generating electricity includes the capital cost, the financing charges, and the production or operating costs (including fuel and maintenance of the technology) at the point of connection to an electrical load or the electricity grid. When determining what new plant to build, a utility company will compare all these costs across the slate of available generating units. Once the capital and finance costs are paid, usually after 20 to 30 years, the cost of operation is just the fuel and maintenance costs.
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