Factors of energy supply-Physical, Economic and Political

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  • Factors of energy supply
    • Political
      • Countries who want to develop Nuclear Energy need permission from the International Atomic Energy Agency.
      • Potential HEP schemes on international rivers, require the agreement from other countries.
      • International agreements such as the Kyoto Protocol, can have influence of energy decisions.
    • Physical
      • Deposits of fossil fuels are only found in a limited number of locations.
      • Large HEP development requires high precipitations& steep sided valleys with impermeable rock.
      • Large power stations require flat land to construct upon, with stable foundations.
      • Solar power requires a large number of days a year with strong sunlight.
      • Wind power needs higher than average wind speeds annually.
      • Tidal power requires a large tidal range.
    • Economic
      • The most accessible and cheapest deposits of fossil fuels are developed first.
      • On-shore deposits of gas or oil are cheaper to develop than those offshore.
      • In poor countries, foreign direct investment is required to develop energy resources.
      • When energy prices rise significantly, companies increase spending on exploration and development.


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