by Samuel Furfari, Professor Emeritus, Université Libre de Bruxelles
Wind and solar propagandists like to quote figures to encourage public authorities to continue subsidising these intermittent and variable sources. If these energies produce cheap electricity, it’s worth giving them a helping hand to bring them fully into the competitive electricity generation business, isn’t it? Except that it’s nothing more than a deception, disguised in lengthy calculations which, because of their detail, lead the naive reader to believe that they are well founded.
Investors need to have a clear view of the viability of the project in which they are considering investing. The final investment decision (FID) will only be taken when the board of directors, or the decision-making body empowered to decide on investments, is convinced that the risk taken is worth taking because the number of years of the payback period of investment is compatible with the company’s strategy.Continuer la lecture de The LCOE deception