discussion forum

Lesson 4 illustrates the concept of the levelized cost of electricity. The end of chapter 6 briefly highlights extensions and weaknesses of levelized cost. Most of these relate to costs and subsidies/incentives that are excluded from the levelized cost model. Research and discuss the different types of costs and/or incentives that should be considered. Feel free to use real examples of costs that firms face in todays energy markets as well as incentives that are offered to these firms. When considering particular costs and incentives in your discussion, you need not limit yourself to the United States (i.e., consider the global market). Other things to consider are the differences between the costs and incentives of different energy generating technologies, the differences in costs and incentives between the various global energy markets as well as between countries, and the methods that are used by energy firms in an effort to minimize these costs (or maximize the incentives).

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