New Simplified Calculation Procedure for Levelized Cost of Energy (LCOE) and Feed-in Tariff
July 28th, 2010 Posted in cost of power generation
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.
Following is a summary table at the end of this blog.
If you need a copy of the simplified model which could be used to determine the “Best New Entrant” technology for a given application (demand and fuel/energy resource availability), please let me know so that arrangements could be made.
MARCIAL T. OCAMPO
Energy Technology Selection & Business Development Consultant
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| Summary Cost of Electricity (Simplified Model) | 2007 | 47.36 | |||||||||||||||
| Type of fuel/feedstock/energy source | Technology/engine | Year | Capacity | Project Life | Capital Cost | Overnight Cost | Fixed O&M | Variable O&M | CF | Efficiency | kg CO2 | CO2 | Fuel Price | NREL | RP MTO | NREL | RP MTO |
| MW | years | m$ | $/kW | $/kW/yr | $/MWh | % of rated | % HHV | per kWh | lb/kWh | $/GJ net | $/kWh | $/kWh | PhP/kWh | PhP/kWh | |||
| IEPR Committee Workshop on the Cost of Electricity Generation – Renewable Energy, Clean Coal and Nuclear | Simplified US NREL & RP MTO Formula | ||||||||||||||||
| Biomass – Biogas | Anaerobic Digester – Dairy | 2006 | 0.25 | 20 | $1.416 | $5,665 | $50.0 | $15.0 | 75% | 20.0% | 3.868 | neutral | 1.116 | $0.164 | $0.210 | 7.779 | 9.943 |
| Biomass – Biogas | Anaerobic Digester – Food | 2006 | 2.00 | 20 | $11.288 | $5,644 | $150.0 | -$87.0 | 75% | 18.0% | 4.298 | neutral | 1.116 | $0.097 | $0.141 | 4.609 | 6.700 |
| Landfill Gas to Energy (LFGTE) | Methane to Power (IC) | 2006 | 2.00 | 20 | $4.199 | $2,100 | $20.0 | $15.0 | 85% | 29.5% | 2.623 | neutral | 1.116 | $0.084 | $0.100 | 3.987 | 4.731 |
| Waste Water Treatment Fuel to Energy (WWTFTE) | Methane to Power (IC) | 2006 | 0.50 | 20 | $1.364 | $2,729 | $22.0 | $18.0 | 85% | 27.5% | 2.813 | neutral | 1.116 | $0.102 | $0.122 | 4.832 | 5.789 |
| Biomass – Direct Combustion | Rankin Cycle (fluidized bed) | 2006 | 25.00 | 25 | $77.343 | $3,094 | $145.0 | $3.0 | 85% | 22.0% | 1.741 | neutral | 2.573 | $0.127 | $0.150 | 5.992 | 7.096 |
| Biomass – Direct Combustion | Rankin Cycle (stoker) | 2006 | 25.00 | 25 | $70.343 | $2,814 | $130.0 | $3.0 | 85% | 21.5% | 1.781 | neutral | 2.573 | $0.120 | $0.141 | 5.675 | 6.685 |
| Biomass – Integrated Gasification Combined Cycle | BIGCC | 2006 | 20.00 | 25 | $66.388 | $3,319 | $150.0 | $3.0 | 85% | 32.0% | 1.197 | neutral | 2.573 | $0.120 | $0.145 | 5.678 | 6.858 |
| Geothermal | Dual Flash | 2006 | 50.00 | 20 | $162.848 | $3,257 | $80.0 | $5.0 | 95% | 15.7% | 60 | 1.896 | $0.118 | $0.139 | 5.608 | 6.582 | |
| Geothermal | Binary Steam | 2006 | 50.00 | 20 | $177.598 | $3,552 | $70.0 | $4.5 | 95% | 15.7% | 0 | 1.896 | $0.122 | $0.144 | 5.772 | 6.827 | |
| Hydro | Small scale | 2006 | 10.00 | 30 | $47.386 | $4,739 | $13.0 | $3.0 | 52% | $0.156 | $0.213 | 7.398 | 10.110 | ||||
| Hydro | In-conduit | 2006 | 1.00 | 30 | $1.805 | $1,805 | $0.0 | $13.0 | 49% | $0.075 | $0.098 | 3.538 | 4.651 | ||||
| Concentrating Solar | Concentrating PV | 2006 | 15.00 | 25 | $84.237 | $5,616 | $45.0 | $0.0 | 23% | $0.408 | $0.548 | 19.344 | 25.932 | ||||
| Concentrating Solar | Dish Engine | 2006 | 15.00 | 25 | $101.037 | $6,736 | $162.5 | $0.0 | 24% | $0.522 | $0.683 | 24.730 | 32.353 | ||||
| Concentrating Solar | Parabolic Trough | 2006 | 63.50 | 30 | $278.044 | $4,379 | $60.0 | $0.0 | 27% | $0.344 | $0.464 | 16.309 | 21.965 | ||||
| Concentrating Solar | Power Tower (Solar Thermal) | ||||||||||||||||
| Solar | Solar PV | 2006 | 1.00 | 30 | $9.912 | $9,912 | $24.0 | $0.0 | 22% | $0.695 | $0.955 | 32.933 | 45.240 | ||||
| Utility Wind | Turbines (1.5 – 2.5 mw) | 2006 | 50.00 | 30 | $106.968 | $2,139 | $30.0 | $0.0 | 34% | $0.108 | $0.145 | 5.093 | 6.863 | ||||
| Fuel Cells | Molten Carbonate FC | 2006 | 2.00 | 20 | $9.274 | $4,637 | $2.1 | $35.0 | 90% | 40.0% | 0.957 | neutral | 2.573 | $0.150 | $0.181 | 7.122 | 8.594 |
| Fuel Cells | Proton Exchange Membrane FC | 2006 | 0.03 | 20 | $0.225 | $7,516 | $18.0 | $35.0 | 90% | 26.0% | 1.473 | neutral | 2.573 | $0.220 | $0.270 | 10.440 | 12.797 |
| Fuel Cells | Solid Oxide FC | 2006 | 0.25 | 20 | $1.271 | $5,082 | $10.0 | $24.0 | 90% | 40.0% | 0.957 | neutral | 2.573 | $0.148 | $0.182 | 7.019 | 8.615 |
| Wave Energy Conversion | Oscillating Water Column | 2006 | 0.75 | 20 | $5.882 | $7,843 | $30.0 | $25.0 | 15% | $0.960 | $1.262 | 45.456 | 59.755 | ||||
| Clean Coal | Integrated Gasification Combined Cycle (IGCC) | 2006 | 500.00 | 40 | $1,212.690 | $2,425 | $35.0 | $3.0 | 80% | 38.0% | 0.844 | 1,928 | 3.291 | $0.088 | $0.109 | 4.190 | 5.170 |
| Advanced Nuclear | ABWR, APWR, AGCR, GT-MHR, ACTR | 2006 | 1,000.00 | 40 | $3,125.816 | $3,126 | $55.0 | $1.2 | 85% | 33.2% | 0.157 | $0.070 | $0.095 | 3.337 | 4.504 | ||
| Paul Breeze and Marcial T. Ocampo | |||||||||||||||||
| Oil Thermal | Rankin cycle | 1996 | 300.00 | 25 | $417.137 | $1,390 | $0.4 | $0.7 | 75% | 31.3% | 0.865 | 10.122 | $0.149 | $0.162 | 7.035 | 7.678 | |
| Oil Diesel | Reciprocating CI engine | 1996 | 50.00 | 20 | $86.420 | $1,728 | $0.1 | $6.6 | 75% | 44.1% | 0.559 | 15.268 | $0.169 | $0.185 | 8.013 | 8.764 | |
| Gas Thermal | Rankin cycle | 1996 | 100.00 | 25 | $139.289 | $1,393 | $0.4 | $0.7 | 75% | 40.8% | 0.467 | 6.279 | $0.084 | $0.096 | 3.972 | 4.548 | |
| Simple Gas Turbine | Aero Derivative | 1996 | 35.00 | 25 | $15.444 | $441 | $0.1 | $6.6 | 75% | 34.4% | 0.554 | 6.279 | $0.079 | $0.084 | 3.747 | 3.987 | |
| Combined Cycle Gas Turbine | CCGT | 1996 | 500.00 | 25 | $456.747 | $913 | $0.2 | $2.6 | 82% | 50.7% | 0.376 | 6.279 | $0.063 | $0.071 | 3.004 | 3.366 | |
| Pulverized Coal | PC Thermal | 1996 | 600.00 | 30 | $955.869 | $1,593 | $0.3 | $4.3 | 75% | 36.3% | 0.884 | 3.291 | $0.071 | $0.085 | 3.370 | 4.025 | |
| Atmostpheric Cirbulating Fluidized Bed Coal | Atmospheric CFB | 1996 | 350.00 | 35 | $671.697 | $1,919 | $0.3 | $4.3 | 80% | 39.2% | 0.820 | 3.291 | $0.073 | $0.089 | 3.442 | 4.193 | |
| BWR Advanced Nuclear | BWR Advanced reactor | 1996 | 1,356.00 | 30 | $5,546.648 | $4,090 | $0.7 | $0.5 | 65% | 33.2% | 0.157 | $0.103 | $0.141 | 4.862 | 6.677 | ||
| PWR Advanced Nuclear | PWR Advanced reactor | 1996 | 1,460.00 | 30 | $3,878.144 | $2,656 | $0.7 | $0.5 | 65% | 33.2% | 0.157 | $0.068 | $0.093 | 3.198 | 4.381 | ||
| PHWR once thru | PHWR reactor | 1996 | 1,330.00 | 30 | $3,278.700 | $2,465 | $0.7 | $0.5 | 65% | 33.2% | 0.157 | $0.063 | $0.086 | 2.977 | 4.076 | ||
| AGR Advanced Nuclear | AGR Advanced reactor | 1996 | 1,100.00 | 30 | $2,769.061 | $2,517 | $0.7 | $0.5 | 65% | 33.2% | 0.157 | $0.064 | $0.088 | 3.037 | 4.159 | ||
| Large Hydro | Dam (impoundment) | 1996 | 200.00 | 60 | $929.104 | $4,646 | $0.0 | $0.0 | 70% | $0.106 | $0.153 | 5.034 | 7.253 | ||||
| Small / Mini Hydro | Run-of-river | 1996 | 30.00 | 50 | $54.838 | $1,828 | $0.0 | $0.0 | 50% | $0.059 | $0.084 | 2.778 | 3.973 | ||||
| Micro Hydro | Run-of-river | 1996 | 0.10 | 20 | $0.297 | $2,965 | $0.0 | $0.0 | 33% | $0.158 | $0.210 | 7.472 | 9.955 | ||||
| Pumped Hydro Storage | Pumped storage | 1996 | 1,800.00 | 50 | $2,568.081 | $1,427 | $0.0 | $131.2 | 8% | $0.417 | $0.538 | 19.763 | 25.458 | ||||
| Geothermal Flashed Steam | Flashed steam | 1996 | 50.00 | 50 | $147.683 | $2,954 | $1.3 | $0.2 | 90% | 28.0% | 1.896 | $0.076 | $0.098 | 3.610 | 4.664 | ||
| Wind Farm | Wind turbines | 1996 | 40.00 | 20 | $48.340 | $1,208 | $0.3 | $0.0 | 30% | $0.067 | $0.089 | 3.151 | 4.202 | ||||
| Solar PV | Photo Voltaic | 1996 | 10.00 | 20 | $41.602 | $4,160 | $0.1 | $0.0 | 30% | $0.229 | $0.304 | 10.827 | 14.420 | ||||
| Solar Thermal trough | Thermal trough | 1996 | 80.00 | 30 | $324.685 | $4,059 | $1.3 | $0.0 | 30% | $0.209 | $0.289 | 9.911 | 13.678 | ||||
| Solar Thermal tower | Thermal tower | 1996 | 200.00 | 30 | $671.664 | $3,358 | $0.9 | $0.0 | 30% | $0.173 | $0.239 | 8.198 | 11.316 | ||||
| Solar Thermal dish + Stirling engine | Thermal dish + Stirling engine | 1996 | 0.50 | 30 | $2.044 | $4,088 | $2.6 | $0.0 | 30% | $0.211 | $0.291 | 10.008 | 13.803 | ||||
| Phosphoric Acid Fuel Cell | PAFC | 1996 | 1.00 | 6 | $2.013 | $2,013 | $0.2 | $2.6 | 80% | 32.6% | 0.584 | 5.687 | $0.141 | $0.156 | 6.680 | 7.409 | |
| Proton Exchange Membrance FC | PEMC | 1996 | 0.25 | 6 | $0.342 | $1,367 | $0.2 | $2.6 | 80% | 31.7% | 0.601 | 5.687 | $0.118 | $0.129 | 5.592 | 6.111 | |
| Molten Carbonate FC | MCFC | 1996 | 20.00 | 6 | $38.329 | $1,916 | $0.2 | $2.6 | 80% | 42.6% | 0.448 | 5.687 | $0.123 | $0.137 | 5.827 | 6.510 | |
| Solid Oxide FC | SOFC | 1996 | 3.00 | 6 | $4.033 | $1,344 | $0.2 | $2.6 | 80% | 42.6% | 0.448 | 5.687 | $0.101 | $0.112 | 4.790 | 5.287 | |
| SOFC + GT hybrid | SOFC-GT hybrid | 1996 | 5.00 | 6 | $8.483 | $1,697 | $0.2 | $2.6 | 80% | 45.3% | 0.421 | 5.687 | $0.112 | $0.125 | 5.296 | 5.904 | |
| Biomass Direct Combustion | Direct Combustion | 1996 | 1,000.00 | 30 | $2,657.525 | $2,658 | $0.6 | $6.8 | 75% | 19.3% | 3.999 | 1.116 | $0.084 | $0.106 | 3.970 | 5.042 | |
| Co-firing with coal (20% coal) | Cofiring Biomass + Coal | 1996 | 150.00 | 30 | $147.848 | $986 | $0.3 | $4.3 | 75% | 33.9% | 1.685 | 1.546 | $0.042 | $0.051 | 1.978 | 2.392 | |
| Biomass Gasification (BIGCC) | Gasification BIGCC | 1996 | 30.00 | 30 | $66.601 | $2,220 | $0.3 | $2.5 | 75% | 29.4% | 2.628 | 1.116 | $0.063 | $0.082 | 2.992 | 3.882 | |
| Municipal Solid Waste | MSW to Power (Incineration) | 1996 | 100.00 | 30 | $698.970 | $6,990 | $0.0 | $7.1 | 75% | 19.3% | 3.999 | 1.116 | $0.178 | $0.236 | 8.428 | 11.190 | |
| Landfill Gas | Landfill Methane Gas CI Engine | 1996 | 3.00 | 30 | $4.974 | $1,658 | $0.0 | $7.1 | 75% | 35.3% | 2.190 | 1.116 | $0.054 | $0.068 | 2.550 | 3.225 | |
| Sewage Digestion | Biogas CI Engine | 1996 | 1.00 | 30 | $7.851 | $7,851 | $0.0 | $7.1 | 75% | 21.9% | 3.538 | 1.116 | $0.194 | $0.260 | 9.209 | 12.305 | |
| Ocean Wave | Wave | 1996 | 0.50 | 60 | $1.132 | $2,263 | $0.0 | $0.0 | 75% | $0.048 | $0.069 | 2.264 | 3.268 | ||||
| Tidal Power | Tidal | 1996 | 100.00 | 120 | $430.132 | $4,301 | $0.0 | $0.0 | 23% | $0.296 | $0.435 | 14.025 | 20.621 | ||||
| Ocean Thermal Energy Conversion – 10mw net | OTEC – 10 mw net | 2008 | 16.00 | 20 | $220.692 | $13,793 | $0.1 | $0.0 | 92% | $0.317 | $0.412 | 15.017 | 19.518 | ||||
| Ocean Thermal Energy Conversion – 50mw net | OTEC – 50 mw net | 2008 | 80.00 | 20 | $606.033 | $7,575 | $0.1 | $0.0 | 92% | $0.193 | $0.255 | 9.158 | 12.090 | ||||
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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
3 Responses to “New Simplified Calculation Procedure for Levelized Cost of Energy (LCOE) and Feed-in Tariff”
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December 10th, 2010 at 9:05 am
i would like use some of the values you have acheived for a group project report at the university where i study. Could u grant me permission to use
September 3rd, 2011 at 10:45 pm
home geothermal heating…
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October 5th, 2011 at 7:15 am
Solar Power Chandlers Ford…
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