The Future Cost And The Key Factors Of Energy Generation

Abstract

This article explores and analyses several factors that are interconnected and affect the cost of alternative sources of energy, such as wind, solar PV, hydro and kinetic energy, and compares them to current fossil fuels such as nuclear, coal and natural gas that provide 85% of the total residential and industrial energy consumption worldwide. In addition, we provide a forecast of the levelized energy cost (LEC) until parity of alternative sources of energy that is directly correlated to the multiple factors seen and analyze such as: government tax breaks and subsidies, weather conditions, market conditions, technological advancements, fuel prices and economic conditions between other with their defining role and their related impact in the price of energy. Moreover, we analyzed the consumers’ role and the possibilities of creating mini-grids and smart home systems that will increase savings in the short and long run and how will they co-exist with currently utility energy providers.