Discussion
A utility avoids 100 MW of peaking capacity costing 40 million per MW. The capital deferred is
Answer: B
Correct answer: 4000 million
\[ 100 \times 40 = 4{,}000\ \mathrm{million}. \] The figure is a deferral rather than a saving outright, since the plant may still be needed later, but deferring capital for several years is worth a substantial fraction of its cost - and it is the avoided capacity, not the avoided energy, that usually justifies a demand side programme.
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