Chapter 12 Multiple choice questions

. Energy prices in different countries are described in Section 12.2. Why are petrol prices higher in most European countries than in the USA?

. Section 12.3 describes inflation, 'real' prices, and affordability. What is inflation? Is it:

. In 2019, what proportion of an average UK household's expenditure went on domestic energy?

. Section 12.4 describes investing in energy including different types of electricity generation. Which of these types of generation plant has the lowest operation and maintenance (O & M) costs per kilowatt hour of electricity generated?

. Box 12.5 and its surrounding text discusses the annuitization of capital costs and the repayment of loans. How much annually would have to be repaid on a loan of £10 million at a discount rate of 8% over a period of 20 years?

. Box 12.7 describes investment in a possible future nuclear power station. The chosen discount rate has a significant effect on its calculated electricity cost. The quoted figure at a discount rate of 8.9% is 9.5 pence per kilowatt hour. What would it be if the discount rate was reduced to 5%?

. Section 12.4 also describes perceived risk in investments. The estimated minimum discount rate to obtain a pre-tax profit on a particular project is described as what?

. Many energy investments, such as those in nuclear and hydro power, may have consequences lasting for many decades. How is the notion that today's investments should not create disbenefits to people in the future called?

. Section 12.5 describes real-world complications with energy costing. Least-cost planning is one method of analysing energy costs. To whom, and for what, does it provide the least cost?

. Various countries have used a range of financial methods to support renewable energy. One method is to provide clearly stated prices for the electricity. What is this mechanism called?

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