Here we calculate the energy crisis situation of winter $2022.$ Let's calculate with realistic assumptions whether it was worth running Finland's last existing coal$-$condensate power plant, Meri$-$Poria, on the Finnish electricity market last winter. The power plant already exists, so this kind of calculation does not take into account the investment cost. The price of hard coal in the port of Rotterdam was around $25$ Eur$/$MWh $($fuel$)$ last winter. Let's assume that shipping coal from Rotterdam to the Meri$-$Pori power plant costs $8$ Eur$/$MWh of fuel. The efficiency of Meri$-$Pori's electricity production is $44\%.$ Let's assume that Meri$-$Pori runs at full production capacity all the time, i$.$e$.565$ MW of electricity. In addition to fuel costs, the plant's variable cost of electricity production is $6$ Eur$/$MWh per unit of electricity produced. It is assumed that there is no fixed operating cost. In November $2022,$ the average price of electricity on the Finnish market was around $180$ Eur$/$MWh$.$ Let's assume that this price is now constant every hour.

a$.$ Calculate the unit cost of the electricity produced per hour in Eur$/$MWh $($assuming there would be no EU CO$2$ emissions trading$).$

b$.$ Calculate the profit$/$loss made by the facility in one hour, assuming that there would be no EU CO$2$ emissions trading. Enter in the unit Eur.

c$.$ Calculate the profit$/$loss made by the plant in one hour, assuming that the cost of the EU CO$2$ emissions trading for the plant is $65$ Eur$/$MWh per unit of electricity produced. $($This corresponds to the actual situation at the moment$)$ Enter in the unit Eur.

d$.$ Also calculate from point d how much profit$/$loss there will be during the whole year, if it is assumed that the situation is the same throughout the year. Assume that there are $8760$ hours in a year. Enter million Euros in the unit.

Answer rating: 100% (QA)

a The unit cost of electricity produced per hour in EurMWh can be calculated as follows Fuel Cost Pr... View the full answer