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Bha61a0201 Energy Economics Smart Grids Yassmine Maioui 0530612 BH61A0201 Energy Economics Homework 3 The calculation of the linear cost function of the heating plant We know that the linear cost function is expressed in the following form: k_k [€/(kW,a)]+ k_m [€/MWh] Where k_k are the fixed costs of energy production expressed in €/(kW,a) k_m are.