New German government pushes the electricity production from fossil resources to renewable resources. Therefore the project ''Our liability to abolish fossil fuel'' (OLAF) shall install wind turbines all over Germany. Necessary investments are financed by new loans which currently have an interest rate of 0.00% p.a (the state receives moeny ''for free''. Loans shall be constantly repaid over 12 years by annual profits (EUR) from selling produced energy (kWh). Electricity can be sold at 0.05 EUR per kWh. A wind turbine producing company offers wind turbines at a price of 1.314.000,--EUR. If wind turbines produce electricity their performance is on average 750 kWh in one hour. 1. Discuss if German government shall implement the project ''OLAF'' or it should be realised by private investors whose loan conditions are worse and who demand a positive return on investment. 2. Briefly expalin one financial restriction which limits the number of installable wind turbines.
New German government pushes the electricity production from fossil resources to renewable resources.
Therefore the project ''Our liability to abolish fossil fuel'' (OLAF) shall install wind turbines all over Germany. Necessary investments are financed by new loans which currently have an interest rate of 0.00% p.a (the state receives moeny ''for free''.
Loans shall be constantly repaid over 12 years by annual profits (EUR) from selling produced energy (kWh). Electricity can be sold at 0.05 EUR per kWh.
A wind turbine producing company offers wind turbines at a price of 1.314.000,--EUR. If wind turbines produce electricity their performance is on average 750 kWh in one hour.
1. Discuss if German government shall implement the project ''OLAF'' or it should be realised by private investors whose loan conditions are worse and who demand a positive
2. Briefly expalin one financial restriction which limits the number of installable wind turbines.
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