Archive for the ‘cost of power generation’ Category:
New Simplified Calculation Procedure for Levelized Cost of Energy (LCOE) and Feed-in Tariff
New Simplified Calculation Procedure for Levelized Cost of Energy (LCOE) and Feed-in Tariff
As part of the on-going technical preparations for the proposed mini-conference on the Mindanao Power Crisis this coming late August or early September 2010 and the main conference on “Energy & Climate Change”, the workshop coordinator, Mr. Marcial T. Ocampo, has prepared the simplified calculation procedure for calculating the levelized cost of energy (LCOE) and levelized selling price (tariff) for conventional and renewable energy resources.
The result of the simplified formulas using the US NREL formula for generation cost and the RP MTO formula for selling price were compared with the results from a full-blown project finance model and the variance between the two methods were minimal in most of the power generation technologies analyzed.
The input data came from the IEPR research summary of 2007 and from internationally published data on power generation technology by noted experts such as Paul Breeze and yours truly, Marcial Ocampo. More »
Tags: advanced nuclear, biogas, biomass, biomass cogeneration, biomass direct combustion, biomass gasification, circulating fluidized bed, clean coal, co-firing with coal, combined cycle gas turbine, concentrating solar, fuel cells, gas thermal, geothermal, geothermal binary, geothermal flashed steam, hydro, landfill gas, large hydro, LCOE, levelized cost of energy, levelized generation cost, levelized selling price, micro hydro, mini hydro, municipal solid waste, nuclear, ocean thermal conversion technology, ocean wave, oil diesel, oil thermal, OTEC, power generation technology, pulverized coal, pumped hydro, sewage digestion, simple gas turbine, small hydro, solar photovoltaic, solar PV, solar thermal, tariff, tidal power, utility wind, wave energy, wind, wind farm
Preparing for the future energy economy – low carbon, hydrogen, nuclear and breeder economy
Preparing for the future energy economy – low carbon, hydrogen, nuclear and breeder economy
The world’s ever growing population requires that massive energy and power projects be developed to keep pace with the socio-economic needs of the more technologically advanced offsprings of civilization.
Mankind has never seen before the exponential growth of energy demand as technological innovations lead to a more wired and electrically dependent society.
So the current scenario of a high carbon energy diet has raised alarm bells throughout the world and this is being relentlessly being pursued by no less than former US President Al Gore and the new “Inconvenient Truth”. More »
How to reduce electricity cost in the Philippines – response to latest MERALCO price increase
How to reduce electricity cost in the Philippines – response to latest MERALCO price increase
The largest distribution utility in the Philippines, MERALCO, recently reflected in the power bill of each residential, commercial, industrial, public building and street lighting consumer classification, the previous month’s rise in WESM prices.
I for one was also hard hit (my power bill increasing from P4,000 to over P7,900 last month), with the explanation of its MERALCO President, Mr. De Jesus, who said, the generation charge reflected the increase in the rise of WESM prices, the spot market of electricity producers. From a previous month of just over P5.14/kWh, the average WESM price jumped to over P6.70/kWh in view of the use of more expensive oil-fired power plants to replace hydro plant capacity that were temporarily lost as a result of a prolonged drought nationwide. Some plants are also undergoing preventive maintenance in preparation for the May 10 elections.
These events will not be the last, and will continue to persist, unless the country improves its generation mix. As I’ve said in previous blogs which was quoted by renowed Philippine Star Columnist Boo Chanco, “no amount of optimization of our existing generation mix will result in any substantial reduction in electricity tariff unless we introduce a significant quantity of nuclear electricity”.
The newly appointed Energy Secretary Ibazeta, who recently replaced Angelo Reyes, clearly emphasized to keep the nuclear power option open as a means to provide a long-term solution to the country’s high power cost.
The following blog will clearly illustrate the potential cost reduction with the entry of a 620mw nuclear power plant into the country’s generation mix, which will product electricity at a constant rate of around 2.50 Pesos per kWh.
Alternatively, the short-term solution is to construct more “clean technology” circulating fluidized bed (CFB) coal-fired power plants that is capable of generating electricity in the order of 50, 100, 200, 300 MW at costs far cheaper than oil-fired, natural gas-fired and geothermal power plants. As I’ve shared before, clean coal will be the transition fuel and power generation technology that will carry the world, including us, while we move towards renewable energy sources.
Happy Reading.
Marcial T. Ocampo
Energy & Business Development Consultant
mars_ocampo@yahoo.com
Sample data for calculating the levelized cost of energy and electricity
SAMPLE DATA FOR CALCULATING THE LEVELIZED COST OF ENERGY AND ELECTRICITY
Your favorite energy technology expert presents sample data for calculating the levelized cost of energy and electricity which could be applied on the NREL formula or implemented in a detailed project finance model.
The input data are summarized below. More »
Tags: cost, cost of power generation, cost of power per kw, cost of power per kwh, levelized cost of energy, power generation, power generation technologies, power generation technology, power plant, power plant design, renewable and non-renewable electricity, renewable and non-renewable energies, renewable and non-renewable fuels, renewable and non-renewable resources, renewable and non-renewable sources
How to calculate the levelized cost of energy – some updates
How to Calculate the Levelized Cost of Energy and Electricity – some updates and developments
The author is re-issuing this article in view of the tremendous interest worldwide on this article. A number of readers have in fact ordered my technology articles, specifically on the cost of power generation technology (a spreadsheet containing the technology, rated capacity, overnight cost $/kW, capacity factor % of rated capacity, fixed O&M $/kW/year, variable O&M $/kWh, energy conversion efficiency % of fuel energy, fuel cost $/GJ, economic life years, construction lead time years, reliability % of operating hours, availability % of calendar days, and levelized cost $/kWh).
Using the NREL formula and a detailed project finance model, I was able to demonstrate that the results would be the same in calculating the levelized cost of energy or electricity. The reader is adviced to email me if they would like to get a copy of the spreadsheet showing the two calculations.
With the passage of the Philippine Renewable Energy Act of 2009 (RE Law) and its implementing rules and regulations (IRR), it is imperative that financial models for renewable energy projects be revised accordingly. This author and our group of experts would assist project proponents and investors in the Philippines develop an updated financial model for evaluating their RE project proposals for endorsement by the Department of Energy (DOE) and for the approval of their feed-in tariffs with the Energy Regulatory Commission (ERC). More »
Tags: cost, cost of power generation, cost of power per kw, cost of power per kwh, levelized cost of energy, power generation, power generation technologies, power generation technology, power plant, power plant design, renewable and non-renewable electricity, renewable and non-renewable energies, renewable and non-renewable fuels, renewable and non-renewable resources, renewable and non-renewable sources
