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Imagine you are a power producer and about to enter a 3-year bilateral contract with a large consumer. Your variable costs are 30 /MWh and
Imagine you are a power producer and about to enter a 3-year bilateral contract with a large consumer. Your variable costs are 30 /MWh and your annual fixed costs are 50,000,000 /y. The capacity of your plant is 500 MW and under the contract, you will sell this capacity for 5000 hours per year.
Q) At which price should you sell your capacity in the bilateral market? (Please provide the answer in /MWh, no decimals.)
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