Question

d.autdenBbcswebdav/pid-4710720-dt-content-rid-8396703 4/institution/Papers/ENEL804/Publish/BE ENEL804 EX +Automatic Zoom Question 4 (10 marks). A 50 MW combined-cycle plant with a heat rate of 7,700 Btu/kWh operates with a 50% capacity factor and the cost is $600/kW Natural gas fuel costs $5 per million Btu. Annual operation and maintenance cost (O&M) is $0.04/kWh. The utility fixed charge rate (FCR) is 0.12 per year. Determine a. The annualized capital cost of the plant (S/yr) b. The annual electricity production (kWh/yr) c. The annual fuel and O&M cost (S/yr) d. The current cost of electricity from the plant (S/kWh) e. The levelized busbar cost of electricity from the plant over its 30 year life (assume that the fuel and O&M costs escalate at 6% per year and the discount rate is 0.14 per year). Answer:

Answer 1

Heat rate =7700Btu/kWh

Cost = $600/kW

Natural gas fuel cost = $5/million Btu

Capacity factor=.5

Maximum output power = 50MW

Actual Power output = .5*50=25MW

(a)

Anualized capital cost = $600/kW x 25000kW = $15000000/yr

(b)

Anual electricity production = 25x 365x 24 MWh/yr = 219000000 kWh/yr

(c)

Anual fuel = $5/million Btu * 7700Btu/kWh * 219 million kWh/yr = $8431500 /yr

Anual O&M =$ 0.04/kWh * 219000000 kWh/yr = $8760000/yr

(d)

Current cost of electricity from plant = annual cost/anual electricity production = $15000000/yr/219000000kWh/yr

=$0.0685/kWh