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The power plant already exists, so this kind of calculation does not take into account the investment cost.

ENERGY AND ENVIRONMENT
Let's calculate with realistic assumptions whether it is worth running Finland's last existing coal condensate power plant, Meri-Pori, on the Finnish electricity market at the moment. 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 is currently around 25 Eur/MWh (fuel). Let's assume that shipping coal from Rotterdam to the Meri-Pori power plant costs 10 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 late autumn 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. Enter the amount of electricity produced per hour in MWh.
 
b. Calculate the unit cost of electricity produced per hour in Eur/MWh (assuming there would be no EU CO2 emissions trading).
 
c. Calculate the profit/loss made by the facility in one hour, assuming that there would be no EU CO2 emissions trading. Enter in the unit Eur.
 
d. Calculate the profit/loss made by the plant in one hour, assuming that the cost of the EU CO2 emission trade 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.
 
e. Calculate again 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.

Expert Answer

ENERGY AND ENVIRONMENT Let's calculate with realistic assumptions whether it is worth running Finland's last existing coal condensate power plant, Meri-Pori, on the Finnish electricity market at the moment. 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 is currently around 25 Eur/MWh (fuel). Let's assume that shipping coal from Rotterdam to the Meri-Pori power plant costs 10 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 late autumn 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. Enter the amount of electricity produced per hour in MWh. b. Calculate the unit cost of electricity produced per hour in Eur/MWh (assuming there would be no EU CO2 emissions trading). c. Calculate the profit/loss made by the facility in one hour, assuming that there would be no EU CO2 emissions trading. Enter in the unit Eur. d. Calculate the profit/loss made by the plant in one hour, assuming that the cost of the EU CO2 emission trade 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. e. Calculate again 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.

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