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Technology Status - NET Nowak Energie & Technologie AG

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Table 2<br />

Ranges of Investment and Generation Costs in 2002 and 2010<br />

Note: Discount rate is 6% for all technologies; amortisation period is 15-25 years, and operation & maintenance<br />

costs are technology-specific.<br />

Source: <strong>NET</strong> Ltd. Switzerland.<br />

● Cost Competitiveness<br />

Although the average costs of renewable electricity are not widely<br />

competitive with wholesale electricity, renewables can offer electricity and<br />

electric services at competitive rates in a wide range of specific on-grid or offgrid<br />

situations or applications.<br />

Figure 3 indicates the cost range of renewable power. To identify and exploit<br />

real market opportunities, it is necessary to assess the competitiveness of<br />

specific applications and services in specific local circumstances. It is only by<br />

taking advantage of these unique situations – be it large-scale on-grid<br />

applications or niche markets off-grid, or in specific country situations – that<br />

renewable electricity can build a vigorous and sustained market.<br />

Many best cases already show that under optimal conditions – i.e. optimised<br />

system design, siting and resource availability – electricity from biomass,<br />

small hydropower, wind and geothermal power plants can be produced at<br />

low costs ranging from 2 to 5 USD cents per kWh. Cost competitiveness is<br />

EXECUTIVE SUMMARY<br />

Low High Low High<br />

investment investment generation generation<br />

costs costs costs costs<br />

USD/kW USD/kW USD/kWh USD/kWh<br />

2002 2010 2002 2010 2002 2010 2002 2010<br />

Small 1000 950 5000 4500 2-3 2 9-15 8-13<br />

hydro power<br />

Solar 4500 3000 7000 4500 18-20 10-15 25-80 18-40<br />

photovoltaic power<br />

Concentrating 3000 2000 6000 4000 10-15 6-8 20-25 10-12<br />

solar power<br />

Biopower 500 400 4000 3000 2-3 2 10-15 8-12<br />

Geothermal 1200 1000 5000 3500 2-5 2-3 6-12 5-10<br />

power<br />

Wind power 850 700 1700 1300 3-5 2-4 10-12 6-9<br />

19

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