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 »

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 »

How to Calculate the Cost Impact of Nuclear Power Addition to the Energy Mix – a Philippine estimate

How to Calculate the Cost Impact of Nuclear Power Addition to the Energy Mix – a Philippine estimate

This is the 4th sequel to the 1st blog on “How to Calculate the Levelized Cost of Energy – a simplified approach”.

Using sample data and reasonable assumptions, I’ve calculated the potential reduction in the weighted average levelized cost of electricity in the energy mix of the Philippines should the mothballed 620 MW Bataan Nuclear Power Plant (BNPP) be revived and allowed to operate again after being in preservation mode since the early 1990’s. More »

Sample Levelized Cost of Energy – the cheapest and most expensive technology

Sample Levelized Cost of Energy – the cheapest and most expensive technology

As the third article of the  series on “How to Calculate the Levelized Cost of Energy”, the author is now ready to present the summary of levelized cost per technology group.  Please refer to the first article for the calculation formulas (US NREL and RP MTO) and the second article for the sample input data used in the calculations (rated capacity, overnight cost, fixed and variable O&M cost, fuel cost, efficiency, capacity factor, station use, taxes, economic life, etc.).

Levelized Cost by Technology Group (using RP MTO Formula)

The levelized cost for each technology of given rated capacity is given for the RP MTO formula (with taxes and depreciation).

Conventional Thermal Plants

Oil Thermal (fuel oil) – 300 MW, 0.1397 $/kWh

Orimulsion Thermal (orimulsion) – 100 MW, $0.1030 $/kWh

Gas Thermal (natural gas) – 100 MW, 0.0808 $/kWh

Pulverized Coal Thermal (coal) – 600 MW, 0.0665 $/kWh

Compression Ignition Engines

Reciprocating Diesel Engine (diesel, fuel oil) – 50 MW, 0.1605 $/kWh

Reciprocating Orimulsion Engine (orimulsion) – 50 MW, 0.1143 $/kWh

Gas Turbines (oil, natural gas)

Simple GT – 35 MW, 0.0755 $/kWh

Recuperated GT – 3 MW, 0.0739 $/kWh

Cascaded Humid Air Turbine (CHAT) – 11 MW, 0.0804 $/kWh

Cascaded Humid Air Turbine (CHAT) – 300 MW, 0.0584 $/kWh

Heavy Frame GT – 200 MW, 0.0875 $/kWh

Combined Cycle GT – 500 MW, 0.0607 $/kWh

More »

Cómo calcular el coste levelized de energía y de electricidad – muestree los datos y los cálculos

How to calculate the levelized cost of energy and electricity – sample data and calculations

As promised in my last blog “How to Calculate the Levelized Cost of Energy – a simplified approach”, I am sharing sample data, assumptions and calculations to provide our readers with greater understanding.

The author, your favorite Energy Technology Expert – Mr. Marcial T. Ocampo , has indeed invested tremendous time and resources to bring this blog to the world and the Philippines.

Should the reader/user find the materials, topics, technology briefs, energy data and formulas very useful and would like to continue receiving such useful information, Marcial would like to request the benefited reader to donate or sponsor the continued updating of this blog.

Please keep in touch with Marcial using the contact information at the end of this blog. There is no fixed amount. Marcial would leave it to the good reader the amount of donation he would like to contribute.

Alternatively, you could order the specific topics of interest and use PayPal to effect the payment. Delivery via email will follow for the ordered technology topic.

You could also retain me as consultant in your energy and business development projects and when bidding for NPC/PSALM power plants for sale in the Philippines. Our select group (technology expert, power plant expert, financial modeling expert and legal expert) will conduct a legal and technical due diligence of the power plant for sale, prepare the technical, economic and financial inputs to a detailed project finance model for estimating the value of the power plant. In this way, you will enhance the chance of your company winning the bid and start operating your own power plant in the Philippines. More »

How to Calculate the Levelized Cost of Energy – a simplified approach

How to Calculate the Levelized Cost of Energy – a simplified approach

Calculating the levelized cost of energy is a fundamental principle in the energy and power industry. It basically allows the comparison of various technologies of unequal life times and capacities without resorting to developing a full-blown project finance model.

This simplified approach is particularly appropriate when doing a rough estimate on the cost of electricity given the various technologies in a country. By applying the formula on each power plant, as if it is continuously replaced to provide incremental power to meet new incremental demand, it provides a good estimate on the cost of electricity had a new plant been constructed to replace the old plant that became obsolete.

The weighted average levelized cost for the country is then estimated by using the electricity generation of each technology as weighing factor. For instance, the effect of injecting a nuclear power plant into the generation mix will be estimated quickly so that the country’s average levelized cost of energy could be compared with its neighboring competitor countries having nuclear power. Applying the same set of formulas and cost factors for each technology will yield a good index on our country’s competitiveness with respect to power costs.

Various Power Generation Technologies

I am sharing with you my own list and classification of the various power generation technologies, both existing and future technologies, that taken as a whole, would supply the ever growing needs of the peoples of our mother earth.

Levelized Cost of Each Power Generation Technology

The only way power generation technologies could be compared with respect to cost is to calculate the levelized cost of energy over its economic life. This involves obtaining data on rated capacity kW, overnigh costs $/kW, fixed Operating & Maintenance cost $/kW/year, variable O&M cost $/kWh, efficiency % or plant heat rate kJ/kWh, economic life years, availability %, load factor % or capacity factor %, fuel cost $/GJ or $/kg or $/L, fuel Gross Heating Value kJ/kg or kJ/L, fuel density kg/L, and construction lead time years.

The levelized cost allows comparison of different power generation technologies of unequal economic life, capital cost, risk and returns, capacity factor, efficiencies or plant heat rate, fuel costs and construction lead times.

The basic formula used is based on the US NREL formula for the levelized cost of energy (net):

Net COE = ICC * CRF / AEPnet + (LLC + O&M + LRC + MOE) – PTC, in US $/kWh

where ICC = Initial Capital Cost (total debt), $

CRF = capital recovery factor, 1/yr = int / (1 – (1 + int)^-Life)

AEPnet = Net Annual Energy Production, kWh/yr (net of plant own use)

= (kW capacity) * (capacity factor) * (hours/year)

LLC = Land Lease Cost, $/kWh

O&M = Levelized Operating & Maintenance Expense, $/kWh

LRC = Levelized Replacement/Overhaul Cost, $/kWh

MOE = Miscellaneous Operating Expense, $/kWh

PTC = US Production Tax Credit, $/kWh

In the case of the Philippines where the effect of income tax and depreciation needs to be considered, the RP MTO formula developed by Engr. Marcial T. Ocampo is shown:

More »

Cost of Power Generation Technologies

The file (129 KB) will cover the following topics:

Type of power plant, Commercial Capacity, Overnight Capital Cost, Fixed O&M ($/kW/yr), Variable O&M (cents/kWh), Thermal Efficiency or Plant Heat Rate, Availability Factor, Load Factor, Construction Lead Time, Economic Life, Fuel Cost ($/GJ), Levelized Cost of Electricity ($/kWh).

Power Generation Technologies:

  • Oil – Gas Thermal
  • Reciprocating / Piston Engine
  • Small or High-Speed
  • Medium Speed
  • Large or Slow Speed
  • Combined Cycle – Waste Heat Boiler
  • Natural Gas – Simple GT
  • Aero-Derivative GT
  • With Recuperation
  • Humid Air Turbine (HAT)
  • Cascaded Humid Air Turbine (CHAT)
  • Heavy Frame GT
  • Natural Gas – Combined Cycle GT
  • Coal – Pulverized
  • Atmospheric CFB
  • Pressurized FBC
  • IGCC
  • Direct Coal-Fired Combined Cycle (DCCC)
  • Super critical & Ultra-Super critical Coal Comb.
  • Geothermal
  • Dry Steam (Vapor)
  • Flashed Steam (Single, Double)
  • Binary Cycle
  • Petrothermal (Hot Dry Rock)
  • Geothermal Preheat
  • Fossil Superheat
  • Nuclear Fission
  • Boiling Water Reactor (BWR), advanced
  • Pressurized Water Reactor (PWR)
  • Pressurized Heavy Water Reactor (PHWR)
  • Advanced Gas-Cooled Reactor (AGR)
  • Candu Reactor
  • High Temp. Gas-Cooled Reactor (HTGR)
  • Gas Turbine Modular Helium Reactor (GT-MHR)
  • Breeder Reactors
  • Nuclear Fusion
  • Hydro
  • Large
  • Pelton Turbine – 50-6,000 ft head
  • Francis Turbine – 10-2,000 ft head
  • Propeller Turbine – 10 – 300 ft head
  • Kaplan Turbine
  • Small / Mini
  • Micro
  • Pumped Hydro
  • Wind
  • Solar PV
  • Crystalline silicon
  • Thin film – Amorphous Silicon
  • Thin film – Indium Diselenide
  • Flat Plate
  • High Efficiency Multi Junction – IHCPV
  • Solar Thermal
  • Trough
  • Tower
  • Dish
  • Salt Pond (power + water)
  • Biomass
  • Direct Combustion
  • Co-firing with Coal
  • Biomass Gasification (BIGCC)
  • Municipal Waste
  • Pyrolysis
  • Landfill Gas (40 – 60% CH4)
  • Anaerobic Digestion (65% CH4)
  • Sewage Digestion
  • Fuel Cells
  • Alkaline (AFC)
  • Phosphoric Acid (PAFC)
  • Proton Exchange Membrane (PEM)
  • Direct Methanol
  • Molten Carbonate (MCFC)
  • Solid Oxide-GT (SOFC)
  • Solid Oxide-GT (SOFC-GT)
  • Energy Storage:
  • Compressed Air Energy Storage (CAES) – Huntorf
  • Large CAES
  • Small CAES
  • Above Ground CAES
  • Flywheel Systems
  • Utility Scale Batteries (USB)
  • Lead acid
  • Advanced
  • Stored Hydrogen
  • Superconduction Magnetic Energy Storage (SMES)
  • Ultracapacitors
  • Ocean Thermal
  • Claude (open cycle)
  • Controlled Flash Evaporation (open)
  • Anderson (closed cycle)
  • Ocean Wave
  • Oscillating Water Column (OWC)
  • Hydraulic Accumulator
  • High Level Reservoir
  • Float or Pitching Devices
  • Wave Surge or Focusing (“tapchan”)
  • Pendulor
  • Tidal Power
  • Single Pool
  • Modulated Single Pool w/ Pumped Hydro
  • Two Pool

Price: 30 USD