Key Cost Reduction Initiatives and their impact on Power Purchase Cost
Some key cost reduction initiatives in the power sector and their impact on power purchase cost , based on recent industry insights: 🔑 Key Cost Reduction Initiatives Optimizing Plant Operations Baseload vs. Peaking Plants : Baseload plants remain fully resourced, while intermediate and peaking plants can be operated with leaner staffing and maintenance. Mission Reassessment : Utilities are reassessing plant missions to align resources with actual usage patterns. Fuel Switching and Renewable Integration Coal to Gas Transition : Switching from coal to natural gas reduces fuel costs and emissions. Renewables (Wind & Solar) : Continued cost declines in solar and wind technologies make them increasingly competitive, reducing long-term power purchase costs. Digitalization and AI Predictive Maintenance : Using AI and IoT for predictive maintenance reduces downtime and operational costs. Smart Grid Technologies : Enhance efficiency and reduce transmission losses. ...