Most Expensive Forms of Electricity Generation

Of course, Electricity is not a by-product that is readily available for usage. You can't simply plug into the ground and get free electricity; it has to be generated from energy sources. So, when we talk of electricity generation, we mean the various technologies that we employ to turn sundry energy into usable and consumable electric energy.

Basically, the predominant categories of electricity generation include:

• Fossil Fuels: Natural gas, coal, and petrol
• Nuclear Energy: Coal and natural gas (combustions), Uranium (nuclear fission)
• Renewable Sources: Wind energy (Wind Power), Sunlight (Photovoltaics), Hydro (running, falling or flowing water), Geothermal (Underground water that is boiling by magmatic heats)

The other major determining factors of how expensive a form of electricity generation is running cost and market matching cost. These costs include fueling, maintenance expenses, repairs, staff wages, waste control, and so on.

When it comes to electricity generation costs, various factors are to be considered to calculate the costs. This is broken down into three different levels, which are somewhat intertwined.

Fledgling capital: This is the initial capital spent on the procurement of the various energy sources.

Sustenance: The costs of maintaining continuous usage which can be in the form of fuel, repair and maintenance costs, salary, and even waste management.

Fixed Regulations: The policies of the country often control this. It also includes tax, levies, insurance, and so on. In some sane climes with stricter measures, it also consists of the costs of rectifying and maintaining consequent environmental damages.

That said, let’s look at the most expensive forms of electricity generation, shall we?

Hydropower

Hydropower used to be considered as the least expensive before the exploration of both solar and gas forms. However, in 2019, the capital cost for hydropower was set at $2000/KW, making it one of the most expensive forms of electricity generation.

The biggest hydro dam is in China and it generates 22,500 MW of power.

Solar PV

The popularity of solar energy is on the high rise; companies and residential utility users particularly champion the new trend. Calculating solar power can be a bit dicey as there isn’t a standardized LCOE yet.

Notwithstanding, solar power varies depending on the location and the technology being used for its installation. Hence, the price of Solar PV is stationed on a lot of guesses, which tends to be different across borders and Jurisdictions. However, it is said that Solar PV costs over $390 per MWh. Some solar installers have teamed up to provide lower prices.

Wind Plant

This form of electricity generation is practiced in two varying environmental conditions, which attract a different capital cost. The onshore wind generating plant estimates $1,600/KW. On the other hand, the offshore wind plant is roughly four times the cost coming down to $6500/KW as of 2019.

Advanced Nuclear Power

Licencing, controlling environmental pollution, research, and staffing affect the cost of advanced nuclear power. All these combined bring the cost to about $6000/KW as of 2019.

To Wrap It Up

The trend and focus of the forms of electricity generation change over time; it is a fluctuating market. Over the years, each of the forms of electricity generation has had their era, where they tend to be the most sought after and the most expensive. However, the United States Energy Information Administration listed Solar PV as 2020 most expensive Electricity Generation technology