There are various methods of Power Generation, some of these are cost-effective in running cost while their CapEx (Capital Expenditure) is high (examples are Nuclear Power Plants and Solar Power Plants, while Hydro Power Plants might also be included in this category) while some of these are low in Capital Expenditure but their running cost is high (like Diesel or petrol generator). Running these generators with efficiency is also of consideration because nobody wants to get out of cash while running this Power Generation facility (that can also be described in sustainability of the business).
Lower Running costs:
- Nuclear Power Generation
- Solar Power Generation
Nuclear Power Generation: Nuclear Power Generation is cost-effective from running-cost costs but not that cost-effective from Capital Expenditure (CapEx) perspective. There are some considerations that must be kept in minds which are distance to the shore: Owing to recent Fukushima Nuclear Power Plant incident in Japan, care must be taken that these plants must be built from distance to the shore/sea that the similar kind of Tsunami can’t wreak havoc as much as it was in that power plant due to spill of radioactive water and other maintenance considerations. It’s fuel Uranimum (or thorium) in some instances can be utilized and there are plenty of methods considerations to separate it form various bodies. It can be built up in some deserts and I/we might build it but some care must be taken to make it as safe as possible.