Question
Unit A needs refitting to increase availability from 80% to 98%. To force the refitting and have it made before the year 2021 will cost
Unit A needs refitting to increase availability from 80% to 98%. To force the refitting and have it made before the year 2021 will cost an additional 2 million during the year 2020. Without forcing the investment, the unit will be retrofitted by the year 2022. A dry year, we have anticipated that a change in price movements would contribute to 10x higher profitability compared to a normal year for unit A. A normal year profitability is about 2 million. There is a 45% chance that a dry year will happen in the year 2021. Should we force the investment? r=6%
Electric power, supply curve SEK/MW Nuclear/CHP revision, low renewableHigh renewables 1000 900 800 700 600 500 400 300 200 0 5000 10000 15000 20000 25000 35000 30000 MW Electric power, supply curve SEK/MW Nuclear/CHP revision, low renewableHigh renewables 1000 900 800 700 600 500 400 300 200 0 5000 10000 15000 20000 25000 35000 30000 MWStep by Step Solution
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