Frankfurter
Member
Wow, ok.
Cost of electricity = One time costs + annual costs
One time costs = construction, negotiation, bidding process, etc
annual costs = plant maintenance, fuel costs, etc
Electrical output of a plant = (energy density of the fuel) x (amount of fuel used) x (extraction efficiency)
Since fuel costs are a cost, and since you need less of a higher energy density material to achieve a specific electrical output, energy density is related to the cost of electricity.
It's literally the whole reason we value resources like oil and coal in the first place. This is obscenely common sense.
That's only true if you assume that all fuels had the same costs to aquire them. One kg of uranium is way more expensive than (say) one kg of coal, though.
If fuel A has an energy density of 10 and costs of 10 per unit, while fuel B has an energy density of 1 and costs of 1 per unit, then both's costs per unit of energy produced are exactly the same - although fuel A has a ten times higher energy density.
And PV and wind have no fuel costs at all btw.