21.0 Energy Economics

1. 21.0 Energy Economics This is a placeholder and Frank Leslie has not completed the presentation yet Dr. Michael Slotkin Frank R. Leslie B. S. E. E., M. S. Space Technology, LM IEEE fleslie@fit.edu; (321) 674-7377 http://www.fit.edu/~fleslie 4/13/2010

2. In Other News . . . • Crude oil falls to about $80/bbl on increasing oil supply estimates 100413

3. 21 Overview • Dr. Slotkin’s presentation is not yet available • What follows are just my thoughts for now – F. Leslie 100413

4. 21.1 Constant Dollar Conversion • The value of the dollar changes with inflation, so varying year costs must be compensated by the inflation rate • After inflation, more money must be earned to buy the same goods 100413

5. 21.2 Present and Future Value Revised 021213 100413

6. 21.3 Estimating System Life-Cycle Costs Revised 021213 100413

7. 21.4 Externalities • Externalities are costs not included in the system cost, but are borne by others • Emission reduction can be encouraged by placing a tax on the emissions Revised 021213 100413

8. 21.5 CFL vs. Incandescent Lamps vs. LEDs • Compact Fluorescent Lamps (CFL) have fallen in price to about $2 per lamp and they last about 8000 hours • They require about ¼ the power for the same light as an incandescent bulb (~$0.25) • LED (Light Emitting Diode) lamps cost about $35 and last ~10000 hours • The energy cost for the quoted life must be added to the cost of replacement labor and the original cost to get a comparison cost 100413

9. 21.6 System Costing Revised 021213 100413

10. 21.7 Truths and Fallacies Revised 021213 100413

11. 21.8 Cost-Savings Analysis: Did you Compute Cost Savings to buy your Car? • Cost savings are often expressed as “years until payoff” • The shorter the payoff time, the better the investment • In buying a new car, one never worries about payoff time • Perhaps, buying a solar system should be considered without payoff computations 100413 070412

12. 21 Conclusion 100413

13. Questions? Olin Engineering Complex 4.7 kW Solar PV Roof Array 080116

14. References: Books • Boyle, Godfrey. Renewable Energy, Second Edition. Oxford: Oxford University Press, 2004, ISBN 0-19-26178-4. (my preferred text) • Brower, Michael. Cool Energy. Cambridge MA: The MIT Press, 1992. 0-262-02349-0, TJ807.9.U6B76, 333.79’4’0973. • Duffie, John and William A. Beckman. Solar Engineering of Thermal Processes. NY: John Wiley & Sons, Inc., 920 pp., 1991 • Gipe, Paul. Wind Energy for Home & Business. White River Junction, VT: Chelsea Green Pub. Co., 1993. 0-930031-64-4, TJ820.G57, 621.4’5 • Patel, Mukund R. Wind and Solar Power Systems. Boca Raton: CRC Press, 1999, 351 pp. ISBN 0-8493-1605-7, TK1541.P38 1999, 621.31’2136 • Sørensen, Bent. Renewable Energy, Second Edition. San Diego: Academic Press, 2000, 911 pp. ISBN 0-12-656152-4. • Tester, Jefferson W. , Elisabeth M. Drake, Michael J. Driscoll, Michael W. Golay and William A. PetersSustainable Energy Choosing Among Options. Boston: MIT Press, 870 pp. July 2005 ISBN-10:0-262-20153-4 090404

15. References: Websites, etc. awea-windnet@yahoogroups.com. Wind Energy elist awea-wind-home@yahoogroups.com. Wind energy home powersite elist geothermal.marin.org/ on geothermal energy mailto:energyresources@egroups.com rredc.nrel.gov/wind/pubs/atlas/maps/chap2/2-01m.html PNNL wind energy map of CONUS windenergyexperimenter@yahoogroups.com. Elist for wind energy experimenters www.dieoff.org. Site devoted to the decline of energy and effects upon population www.ferc.gov/ Federal Energy Regulatory Commission www.hawaii.gov/dbedt/ert/otec_hi.html#anchor349152 on OTEC systems telosnet.com/wind/20th.html www.google.com/search?q=%22renewable+energy+course%22 solstice.crest.org/ dataweb.usbr.gov/html/powerplant_selection.html Revised 090414