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Daytime and nighttime wholesale prices in an electricity market vary as follows in accordance with the number of installed solar units: Number of installed solar
Daytime and nighttime wholesale prices in an electricity market vary as follows in accordance with the number of installed solar units: Number of installed solar Daylime (6am-6pm) Nightlime (6pm-6am) units electricity price electricity price $75/MWh $55/MWh 5 $70/MWh $55/MWh 10 $55/MWh $55/MWh 15 $35/MWh $55/MWh 20 $10/MWh $55/MWh Each solar unit has a fixed cost of $10,000/hour, variable (marginal) cost of $0/MWh, generation of 200 MWh in every daylight hour, and generation of 0 MWh in every nighttime hour. A proposed new natural gas power plant would have a capacity of 200 MW, a fixed cost of $2,000/hour, and a variable cost of $40/MWh. Assume that this new plant would bid marginal cost, and that adding it would not affect the market-clearing price for electricity. What is the LCOE (in $/MWh) of this gas plant if 0 solar units are installed in the system? (Note: only submit a number, do not enter the unit) Answer: What is the market value (5/MWh) of this gas plant if 0 solar units are installed in the system? Answer: What is the LCOE (in $/MWh) of this gas plant if 15 solar units are installed in the system? (Note: only submit a number, do not enter the unit) Answer: What is the market value of this gas plant (S/MWh) if 15 solar units are installed in the system? (Note: only submit a number, do not enter the unit) Answer: Would it be profitable to build this new natural gas plant if 0 solar units are installed in the system? Would it be profitable to build this new natural gas plant if 15 solar units are installed in the system? Explain your
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