Question

You are considering building a residential wind power system to produce 6,000 kWh of electricity each year. The installed cost of the system is $1.50/Winstalled. The system is estimated to have a capacity factor of 22% and a 10 year life. The interest rate is 8% with an operations and maintenance cost of $0.04/kWhgenerated. What is the leveled cost of electricity for the system ($/kWh)?

Answer 1

Answer:

leveled cost of electricity LCOE is 0.1159/kwh

Explanation:

given data:

installation cost of system = $1.50/winstalled

capacity factor = 22%

life = 10 year

rate of interest 8%

operation and maintenance cost = $0.04 / kwh generated

capcaitence recovery factor$CRF = \frac{i(i+1)^n}{(i+1)^n -1}$

i= rate of interest

n = annuity period

$CRF = \frac{0.08(1+0.08)^10}}{(1+0.08)^{10} -1} = 0.14903$

$LCOE = \frac{cost\ of \installation \times CRF}{hours/ available \times capacity\ factor} + variable\ o&M\ cost$

$=  \frac{1.50\times 1000/kw \times 0.14903}{8760\times 0.22} + 0.04/kwh$

          = 0.1159/kwh + 0.04 /kwh

          = 0.1559 /kwh