CAPEX vs. short-run marginal cost (The Energy Academy - S2 E2) скачать в хорошем качестве

CAPEX vs. short-run marginal cost (The Energy Academy - S2 E2)

Welcome back to The Energy Academy! Before we dive into the nuts and bolts of the commercialisation of electricity in Great Britain, let's outline some key vocab: CAPEX vs. short-run marginal cost. All generators cost money to build - a lot of money - and these costs have to be taken into account when considering a project’s viability. The cost of building infrastructure is called Capital Expenditure, or CAPEX. When planning and building a generator of any type, the time it will take to pay back the initial CAPEX (and the profits that can be made on top of that) have to be considered. However, while a nuclear plant might cost more for the initial build than, say, a gas turbine generator, once built, it’s then cheaper to run. All generators cost money to run. The cost of running a generator is called the short-run marginal cost. This literally refers to the financial cost of a given generator producing one more unit of electricity than it’s currently producing. The short-run marginal cost of some generators is higher than others (due to fuel costs, carbon tax, the costs of staffing a plant, etc.).