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A Feasibility Study - Aaltodoc - Aalto-yliopisto

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4 Electricity – availability and cost levels<br />

This Chapter presents the prices of electricity in various countries. The purpose of this<br />

is to eliminate those countries from this study with too cheap electricity production<br />

capabilities. Even if those countries would have need for fresh water, there most likely<br />

would not be demand for the system proposed by the <strong>Aalto</strong>RO concept, as more<br />

conservative methods of water production would most likely be more economically<br />

viable.<br />

Previous two Chapters examined countries from two perspectives: the wave energy<br />

resource and the need for fresh water. Four countries met the criteria: Australia, Chile,<br />

South Africa and the US. This Chapter will examine the price of electricity in each<br />

country.<br />

In addition, isolated areas, especially islands, would be ideal locations for <strong>Aalto</strong>RO.<br />

These areas are usually relying on imported fossil fuels, even though they might have<br />

good renewable energy resources themselves. Therefore, Hawaii and the Canary Islands<br />

and isolated areas in general are taken under consideration as suitable areas for <strong>Aalto</strong>RO<br />

and their electricity prices will be examined.<br />

4.1 Australia<br />

Australia has huge reserves of both fossil and renewable energy, and it also produces a<br />

fair amount of energy for export. Australia has e.g. over 10 % of the world’s coal<br />

reserves and over 45 % of the uranium reserves. The major supplier of Australian<br />

primary energy needs is brown and black coal with a share of 39 %, followed by<br />

petroleum products (34 %), natural gas (21 %) and renewables (5 %) (Australian<br />

Government 2011). Fossil fuels cover 90 % of the electricity production (BREE 2012).<br />

Australia long had a fairly low level of household electricity price, but that situation has<br />

changed rapidly. According to a recent study by the Energy Users Association of<br />

Australia (2012), the average price of electricity in Australia has increased over 40 %<br />

since the year 2007. Also, it has been projected that the prices will increase a further 30<br />

% by 2013/2014. With these prices, Australians will pay more for their electricity than<br />

people e.g. in the United States or in many European countries. The electricity price in<br />

Australia varies somewhat by state, but on average it is roughly 26 US cents/kWh for<br />

households (EUAA 2012).<br />

4.2 Chile<br />

Chile produces vast amounts of its electricity with hydropower (roughly 40 %) while<br />

the rest is mostly supplied via traditional fossil fuels of coal, natural gas and oil. The<br />

electricity market of Chile was the first to undergo a comprehensive reform in the<br />

15

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