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You are asked to advise the government on a renewable energy policy program. If the market price for electricity is 45 /MWh, what is the

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You are asked to advise the government on a renewable energy policy program.

  1. If the market price for electricity is 45 /MWh, what is the cost to the government of the feed-in tariff (in /MWh, no decimals) for the wind energy that is produced?
  2. How much total profit does a wind turbine make in this case (in /MWh, no decimals)?
  3. If the government implements a feed-in premium of 35 /MWh and the market price is 55 /MWh, what will be the annual operating profit of the biomass plant? (in Mio , max one decimal)
  4. Given the same market price of 55 /MWh, what will be the net annual profit of the wind farm? (in Mio , max one decimal)
Wind Farm Biomass Plant 0 80 Variable Costs (Euro/MWh) 22,500,000 12,000,000 Total Fixed Costs (Euro/year) Capacity (MW) 150 100 2000 4000 Annual run time (hours/year)

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