4.2 COST AND PERFORMANCE 4.2.1 Introduction The comparison of projected energy costs for alternative technologies is a prime consideration in the selection of programs for further research and development. The basic energy costs of the SPS and other technologies are described in Sec. 3.3. The goal of these cost analyses is to produce an objective comparison using consistent data and assumptions. These comparisons were performed with an internally consistent and traceable data base that was developed for this assessment. In addition, many assumptions were made in performing the cost comparisons reported in this section. Therefore, the absolute numbers reported here are intended only for the present comparison, should not be compared to assessments or energy cost studies reported elsewhere . Different costing methods, assumptions, or base data could affect the calculations substantially so that comparability to other studies is not possible without a detailed knowledge of technology costing and the differences in assumptions and data that exist between studies. However, the goal of this study was not to produce information that is directly comparable in detail to other studies, but rather to be internally consistent, so that this cost comparison would be useful in decision making concerning the relative economic viability of SPS. The comparative cost analysis conducted in this assessment was a multistep process. These steps were assembled into an evaluation framework so that the numerous analytical steps could be performed in an orderly progression. Figure 4.11 shows the sequence of steps in the evaluation framework. The results of four of these steps are discussed in other sections of this report: the SPS and the six alternative technologies are characterized in Sec. 3; the cost characterization, which includes capital and operation and maintenance data, is described in Sec. 3.3; and the alternative future energy supply-demand scenarios, which include SPS implementation rates, are described in detail in Sec. 4.1. The next section of this report (Sec. 4.2.2) will begin with a description of the cost uncertainty that exists in the base data that is reported in Sec. 3.3 for all of the technologies. The uncertainty in fuel price projections that resulted from the alternative futures scenarios will be reported in Sec. 4.2.3. Section 4.2.4 contains comparative cost information standarized to levelized annual costs for all technologies. The comparative cost information described in Sec. 4.2.4 was subjected to sensitivity analyses, which are discussed in Sec. 4.2.5. Finally, an uncertainty analysis of the comparative costing approach was conducted, and this analysis and its implications for any future comparisons are discussed in Sec. 4.2.6. This cost comparison section ends with some summary statements regarding the status and conclusions of the analys is.
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