StormFisher A Power with Purpose Case Solution

2. What are the alternatives and recommendations (reasoning on why you chose the recommendation)?

Available Options

Hydroelectric Power – cost ($4000 - $7000) per kW

Biogas – cost ($4000 - $7000) per kW

Wind Energy – cost ($2000 - $2750) per kW

Geothermal Power – cost ($3800 - $5800) per KW

Based on the capacity factor, the cost per kW, and possible acceptability and productivity in the Ontario environment above mentioned four options are the most feasible ones as compared to all alternate renewable energy sources mentioned in the case study. Solar Photovoltaic, increasingly popular option is not feasible because of its 12 -15 percent capacity factor because of the local weather.

3. What are the possible courses of action for the decision maker? Endeavor to identify and rank alternative actions.

First of all, the decision maker has to identify the capacity factor of each of the alternative energy source because weather and seasons of Ontario will have a significant effect on the productivity levels. Second factor to consider would be the cost of construction of the facility or the equipment as financing large commercial facilities could be an issue. Third, time required to develop the facility should also be considered. Last, downsides of each energy source should be evaluated closely so as to avoid negative consequences.

Ranking

1. Biogas

2. Wind Energy

3. Geothermal Power

4. Hydroelectric Power

4. What are the likely short and long-term consequences of the policies that you have identified?

Biogas is a feasible long term alternative for renewable energy source. Its capacity factor is as high as 80 to 100 percent if it is properly maintained. The production facilities also work independently of the weather and seasonal conditions unlike wind or solar energy sources. In addition to this, Biogas can also be used as a substitute for natural gas and thermal heat making it an attractive option.

5. Make a recommendation. Your recommendation should be realistic, actionable, and supported by analysis (including numerical where appropriate). Finally, your recommendation should consider implementation: how should the entrepreneur carry out your suggestions, when they should do it, and how. You should address downsides of the recommendation.

The best option for two partners would be to move forward with Biogas energy source. Though, development of its facilities is bit complicated as compared to wind or hydropower because of sourcing of organic by-products, but it is the most feasible option, in the long term. Its facilities can operate twenty four hours and seven days a week providing base load power generation i.e. enough to meet the region’s minimum demand. In addition, there would be absolutely no impact of weather or season on the productivity resulting in capacity factor up to 80 – 100 percent.