[Marxism] Cuba's energy prices, random thoughts.

Rod Holt rholt at planeteria.net
Mon Nov 28 21:11:30 MST 2005


Just a note on the "cost" of elecricity --
Fuel and, consequently, generator efficiencyis a minor part of the 
operating expense. With a few numbers from "The Economics of Nuclear 
Power," by the World Nuclear Association, 2004:
The OECD numbers (which just happen to be before me) give 1¢ euro/kwh 
for coal and about twice that for natural gas in 2000-2003 period. I.e., 
with fuel 1/6th to 1/3rd of the final consumer price, generation 
efficiency, which varies only from 25% to 38%, does not greatly 
influence electricity cost to the consumer. In capitalist countries, the 
main determinates are distribution costs (maintaining all the wires, 
posts and transformers, etc.), the costs of billing and collecting, 
general administration, and … profits and interest on all those bonds. 
They also point out that wind power is best of all; no fuel cost and 
lowest operating expense. These are estimates, of course. Wind power is 
estimated to cost 0.1¢ to 0.2¢ euro/kwh including only capital and 
generator maintenance costs.
-rod

dwalters at marxists.org wrote:

>Thanks Joaquín for your comments on this. Cleary, at the end of the day, the
>change in electricity prices will have a rationing effect, and how THIS effects
>the future development of power, or alternative forms of power, will be
>interesting to watch.
>
>[clip]
>  
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