CEP Renewable Energy Technologies & Integration 2

Question 1

Which metric best measures the long-term cost competitiveness of a renewable energy project compared to other generation technologies?

Accepted Answer

Levelized Cost of Energy (LCOE)

Answer

Net present value (NPV)

Answer

Internal rate of return (IRR)

Answer

Debt service coverage ratio (DSCR)

Question 2

What is a Renewable Energy Certificate (REC) and what does it represent?

Accepted Answer

A market instrument representing the environmental attributes of one megawatt-hour of renewable electricity generation

Answer

A government-issued operating permit for renewable plants

Answer

A credit used to offset renewable project construction costs

Answer

An interconnection approval from the regional grid operator

Question 3

Which interconnection standard governs how small renewable generators (≤20 MW) connect to the distribution grid in most U.S. states?

Accepted Answer

IEEE 1547

Answer

NERC Reliability Standard FAC-001

Answer

FERC Order 2003

Answer

UL 1741

Question 4

A corporate energy buyer procures a solar PPA with a 'as-generated' shape. What basis risk does this create?

Accepted Answer

The risk that the solar generation profile will not match the buyer's actual load profile, creating residual energy imbalances

Answer

The risk that the PPA price will exceed market prices over time

Answer

The risk that the project will fail to achieve commercial operation

Answer

The risk that transmission congestion will prevent energy delivery

Question 5

What is the function of a Renewable Portfolio Standard (RPS) in the energy market?

Accepted Answer

It requires retail electricity suppliers to source a minimum percentage of their sales from eligible renewable resources

Answer

It sets a national price floor for renewable electricity

Answer

It provides direct cash grants to renewable developers

Answer

It mandates interconnection timelines for renewable projects

Question 6

Which factor most significantly determines the capacity factor of a wind energy project?

Accepted Answer

The average wind speed and distribution at the project site

Answer

The turbine manufacturer's warranty terms

Answer

The availability of federal tax credits

Answer

The distance from the project to the nearest substation

Question 7

In evaluating a solar-plus-storage project for procurement, what is the primary advantage of co-locating battery storage with a solar array?

Accepted Answer

Allowing the solar project to shift generation to higher-value hours and provide grid services such as frequency regulation

Answer

Eliminating the need for grid interconnection

Answer

Reducing the federal ITC basis eligible for credit

Answer

Qualifying the project for a different NERC reliability standard