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

leveled cost of electricity LCOE is 0.1159/kwh

Step-by-step 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 = (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 = (cost\ of \installation * CRF)/(hours/ available * capacity\ factor) + variable\ o&M\ cost`

`=  (1.50* 1000/kw * 0.14903)/(8760* 0.22) + 0.04/kwh`

= 0.1159/kwh + 0.04 /kwh

= 0.1559 /kwh