Cost analysis for production of electricity

Analyze the cost structure of electricity production shows that at the current stage of development of industrial production the trend of reduction of energy intensity dominates over the tendency of growth of power. A significant impact on the energy value of have climatic conditions, which can be characterized by such indicators as the number of degree-days (gsas). This indicator is defined as the product of the length of the heating season by an average value of the temperature difference.

Without taking into account this fact, the analysis of cost of production in the electricity sector, made on the basis of a comparison of energy intensity in various countries could be incorrect. Analysis of the volume of production confirms that the equality of these two indices in some countries does not necessarily reflect the level of development of these economies. For example, in Latin American countries have low value of energy intensity, but a low value of per capita GDP. This can be explained by the mild climate of this region, precluding the use of large amounts of energy for heating. At the same time, analysis of cost of production of electricity, cross-country comparisons, suggest that the increase of economic level of countries accompanied by a decline in energy intensity. You can say that the energy efficiency of the economy is objectively necessary.

Link to the less favourable climatic conditions should not have a calming effect on the energy efficiency of the country. If the analysis of cost of production shows that, for example, the energy saving potential in the country is 30% of energy consumption. This means that the current consumption can be reduced by at least 30%, which will bring the value of this indicator to its level in advanced countries. Reserves of increase of efficiency concluded that industry may have a specific structure. If the industry has the engineering focus, its structure objectively needs to shift to non-energy intensive high-tech production. Analysis of cost of production production definitely gives you the opportunity to claim that the GDP growth mainly occurs on the basis of the development of SMEs and the service sector, and this extra degree favors the reduction of energy intensity of GDP.

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It Should be noted that the indicator of intensity is not fully characteristic of the level of efficiency of energy use, i.e. we cannot say whether the value of the high or low level of efficiency. It can be used to characterize the dynamics of energy efficiency for a number of years for comparison of energy efficiency for a number of similar enterprises. It can be used for comparison and not for the same purpose to companies, if the volume of production is measured in monetary units. In this case, more energy-intensive industries will have higher values, although much depends on the value of the money measurement unit.

If we consider the brand of this enterprise, the value of the intensity of it can vary significantly depending on the extent to which they implemented energy saving measures. However, not any energy saving measures should be taken into account when assessing the energy saving potential. First of all, have implemented measures of the organizational-economic nature, no-cost and low-cost events in nature, such as the use of secondary energy resources. But there are activities associated with the replacement of the existing energy-saving technologies. The use of energy saving technologies can often require major reconstruction and cost this may not always be justified, since the effect may be quite insufficient to recoup investment costs. In such cases, the improvement of energy efficiency can be economically feasible. However, a new company that has modern energy-saving equipment, will have a higher level of efficiency.