Renewable Energy Economics — Prelims Questions

Which of the following statements regarding the Levelized Cost of Energy (LCOE) in renewable energy is/are correct? 1. LCOE includes only the capital expenditure of a power project. 2. A lower LCOE generally indicates higher cost-competitiveness of an energy technology. 3. Grid parity is achieved when the LCOE of renewables is higher than conventional electricity costs.

Consider the following statements regarding Renewable Energy Certificates (RECs) in India: 1. RECs are traded on power exchanges and represent the physical delivery of green power. 2. Obligated entities can purchase RECs to meet their Renewable Purchase Obligations (RPOs). 3. The price of RECs is determined by the Central Electricity Regulatory Commission (CERC) and remains fixed.

Which of the following factors primarily contribute to the declining Levelized Cost of Energy (LCOE) for solar PV in India? 1. Technological advancements in solar modules. 2. Competitive bidding through reverse auctions. 3. Increased cost of land acquisition. 4. Higher Weighted Average Cost of Capital (WACC).

The term 'grid parity' in the context of renewable energy economics refers to:

Which of the following is NOT a macroeconomic benefit of India's renewable energy transition? 1. Reduction in fossil fuel import bill. 2. Creation of new employment opportunities. 3. Increased reliance on imported solar PV modules. 4. Enhanced energy security.