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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

mars_ocampo@yahoo.com

energydataexpert@gmail.com

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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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3 Responses to “New Simplified Calculation Procedure for Levelized Cost of Energy (LCOE) and Feed-in Tariff”

  1. jijo Says:

    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



  2. geothermal heating and cooling costs Says:

    home geothermal heating…

    […]New Simplified Calculation Procedure for Levelized Cost of Energy (LCOE) and Feed-in Tariff | Energy Technology Expert[…]…



  3. Solar Power Chandlers Ford Says:

    Solar Power Chandlers Ford…

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