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Costs & Competitiveness

EnergyPier and the sustainable economy

N.B.: Calculations and comparisons carried out in July 2021

Production costs for 2025–2035 and projections for 2050

The cost of electricity generation from hybrid power stations (solar+wind) EnergyPier consists of four components:
  • The cost of the structure
  • The manufacture of photovoltaic panels
  • The production of AnemoGenTM generators
  • The positive benefits of externalities, such as the protection of road surfaces (savings on road resurfacing, gritting and snow clearance), noise reduction, rainwater harvesting, etc.
When applying the LCOE formula to projects at an advanced stage of design, in Switzerland and in a subtropical country, the cost estimates are as follows:
The commonly used LCOE formula does not take externalities into account when calculating production costs. Yet today, almost no one disputes the significance of these externalities. Global warming alone is dominating an ever-increasing amount of media coverage, whether in relation to analysing its likely consequences or discussing the legal measures to be put in place to combat it. For most of the energy sources currently used worldwide, the primary characteristic of externalities is that they are negative. Taking them into account, for example by factoring in the consequences of CO2 emissions, would significantly increase the calculated costs.

Cost comparisons with other renewable energy sources - Competitiveness

It is interesting to compare the projected production costs for hybrid power stations (solar, wind and thermal) with the cost projections published by the SFOE for the various electricity generation technologies

(source: SFOE 2019 – Potential, costs and environmental impacts of electricity generation facilities).

Current electricity generation costs (base year: 2018)

Source: SFOE

Estimated costs of electricity generation in 2050

Source: SFOE

Generation costs for new power generation facilities built in Switzerland (in ct./kWh) and offshore wind energy abroad

It is clear that the EnergyPier solution achieves highly competitive production costs in both the short and long term, which should enable its rapid integration into the energy landscape as a complement to existing renewable energy sources, particularly hydroelectricity, solar power and wind power.

Its contribution in terms of production volume is expected to complement photovoltaic and wind power, which are set to develop rapidly.

Exploitable potential of renewable electricity generation facilities in Switzerland (in TWh/year)

The table above shows the exploitable electricity generation potential by technology; this includes both current generation and new exploitable generation.

Level of investment

The entry cost for each generation technology is often summarised as the level of investment calculated in dollars per megawatt-hour.

Source: International Energy Agency (IEA) – Projected Costs of Generating Electricity

*Excluding positive externalities

MEDIAN INVESTMENT COST (IN DOLLARS PER MEGAWATT-HOUR)


Gas
12.7
Coal
27.2
EnergyPier
30.0–70.0*
Nuclear
57.9
Onshore wind farm
65.7
Large hydroelectric dam
65.9
Solar Farm
102.3
Offshore wind farm
126.2
Commercial rooftop solar
128.0
Residential rooftop solar panels
188.6

When the LCOE formula is applied to ongoing EnergyPier projects, both in Switzerland and in a subtropical country, the cost estimates fall within the lower cost brackets of the various technologies.

EnergyPier offers highly competitive production costs in both the short and long term, which should enable its rapid integration into existing renewable energy sources, notably hydroelectricity, photovoltaics and wind power.

In terms of production volume, EnergyPier is expected to complement solar and wind power, which are currently undergoing rapid development. EnergyPier power stations will fall into the category of power stations requiring a comparatively low level of investment.

To determine its production costs, the electricity sector frequently uses a model known as LCOE (Levelised Cost of Energy). For a given power generation facility, this corresponds to the sum of the discounted costs of energy production divided by the quantity of energy produced, which is also discounted. It is typically expressed in ct/kWh (or another currency).


Calculating the cost price of the energy produced involves taking into account a multitude of factors, some of which are fixed and objective (the price of a solar panel), others objective but variable and entirely predictable (the cost of a foundation depending on the local geology), others that are variable and partially predictable (the weather), variable and almost impossible to predict (the state of the economy), some that are entirely arbitrary (the rate of return on invested capital, the financing model), and finally, the most difficult factors: those subject to controversy, such as the cost of nuclear waste storage, the impacts of global warming, etc.