Question

4. For an energy source with constant energy production and no operating cost, the levelized cost of energy (LCOE) per kilowatt hour (kWh) can be calculated as: annualized capital cost annual kWh production The annualized capital cost is like a mortgage payment, an annual cost that includes paying both the principle and interest (or opportunity cost of capital) over the life of a project. This can be calculated as: Annualized capital cost = K where K is the capital cost, r is an interest rate, and T is the life of the project. a. Find the levelized cost of electricity for a 5 kW capacity solar electric system if the system capital cost is $3,000 per kW of capacity, the interest rate is 5%, the system lasts 30 years, and the capacity factor is 0.15. b. Find the levelized cost of energy for a 300 kW hydropower plant, if the capital cost is $5,000 per kW of capacity, the interest rate is 5%, the system lasts 40 years, the capacity factor is 0.70, and for simplicity we assume no operating costs (small-scale hydropower operating costs are typically low, but greater than zero).

Answer 1

a) C 5 kw Capi T 30 K 3000 515000 ital Cost 1500o o os Ll.os -975.77 1-3 2 130) 029

15 00000 op Cost 40 1500 000 ス OvoG C 1-05) 스 87417, 2 2 97417.242 21 0 ニー416-212 6