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This ratio makes sense: offshore wind projects require longer supply chains, more complex logistics, and higher initial capital expenditures (Capex) and materials than their conventional on-shore counterparts.
Initial capital expenditures of HIT are high and payers do not directly compensate institutions or providers for its use, or for the resulting higher quality and safer care.
However, if the price is too low, the firm will not be able to recover the cost of the initial capital expenditures.
Similar(57)
Therefore, an innovative way to offset WEC high initial capital expenditure is their incorporation in coastal defence, with the added benefit of electricity production.
They have developed and wholly own their own software, preferring large initial capital expenditure and minimum ongoing costs, to the low initial and higher ongoing costs of relying on another company for support.
Electrical installations in hazardous areas involve high initial capital expenditure on methods of safeguarding and continuing high inspection and maintenance costs relative to comparable installations in non-hazardous areas.
In some cases technology lowers the initial capital expenditure but increases the operational expenditure.
In addition, the initial capital expenditure for a VAPEX process can be substantially less than a thermal project.
The two companies have reported further losses, which the companies claim are on account of the high initial capital expenditure to start the GSM business.
On the other hand the macro layer upgrades require a higher initial capital expenditure, but have lower annual running costs [15].
Generally, lower operating costs can compensate higher capital expenditures meaning that the owner should carefully evaluate the total cost of ownership of the various alternatives, and not consider only the initial capital expenditure.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com