Industries · Energy and resources
Power, utilities and renewables
How electricity is made, moved and sold; why the cheapest new power is often solar or wind; what levelized cost and capacity factor mean; how grids, regulation and storage work; and how power markets differ in Europe, the Gulf, India and Africa.
Key takeaways
- Electricity must be produced at the same moment it is used, because it is hard to store.
- A solar or wind plant spends almost all its money before it produces anything, and then its fuel is free.
- Power cases usually ask whether to build something (a plant, a battery, a line), how to fix a loss-making utility, or how to reach a clean energy target.
- Explain generation, transmission, distribution and retail, and who earns money at each step
- Calculate capacity factor, a simple levelized cost of electricity and a battery storage margin
- Explain the merit order and why solar and wind lower wholesale prices at some hours
- Describe the main market models in Europe, the Gulf, India and Africa
- Crack typical power and renewables cases, starting with the right driver
Lessons
How the power system works, and who makes money in it
Generation, grids and retail; the generation mix; the main market models by region; and the numbers the industry watches.
Power economics and operations: levelized cost, the merit order, storage and the grid
Why financing decides the cost of solar, how the merit order sets prices, how batteries earn money, and the supply chain behind a power project.
Power players, trends 2024 to 2026, and how to crack the cases
Who the players are by region, what changed from 2024 to 2026, regulation basics, typical prompts, traps and drills.
Worked cases in this module
Look it up
Key terms
- Value chain
- Capacity utilization
- Fixed cost
- Variable cost
- Barriers to entry
- Capacity factor
- LCOE (levelized cost of electricity)
- Merit order
- PPA (power purchase agreement)
- Independent power producer (IPP)
- Rate base
- Curtailment
- AT&C losses (aggregate technical and commercial losses)
- Capex (capital expenditure)
- Cost of capital (WACC)
- Discount rate and hurdle rate