## Levelized Cost of Energy – sample calculation results

**Levelized Cost of Energy – sample calculation results**

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 calculation of levelized cost of energy and electricity (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).

Please revisit this link for the US NREL and RP MTO formulas for levelized cost of energy:

**ASSUMPTIONS:**

Franchise Tax = 2.0% of revenue

Business Tax = 0.005% of revenue

DOE 1-94 Fee = 0.01 PhP/kWh sold

Corporate Income Tax = 35% of taxable income

Hours Per Year = 24 * 365 = 8,760 hours/year

Equity = 30%

Debt = 70%

Minimum Equity IRR = 15% p.a.

Debt Interest = 12% p.a.

Weighted Average Cost of Capital (WACC) = 30% x 15% p.a. + 70% x 12% p.a.

= 12.9% p.a.

Discounting Rate = WACC = 12.9% p.a.

Exchange Rate = 48.46 PhP/US$ (April 21, 2009)

Diesel Price = 25.45 PhP/Liter = 83.51 US$/bbl

(19,650 BTU/lb HHV, 18,453 BTU/lb LHV, 0.820 kg/Liter)

Bunker Price = 17.90 PhP/Liter = 58.72 US$/bbl

(18,400 BTU/lb HHV, 17,449 BTU/lb LHV, 0.92 kg/Liter)

Natural Gas Price = 6.00 US$/MMBTU

(20,754 BTU/lb HHV, 18,798 BTU/lb LHV)

Orimulsion Price = 50% of Bunker

(13,330 BTU/lb HHV, 12,384 BTU/lb LHV)

Coal Price = 85 US$/MT

(11,630 BTU/lb HHV, 11,105 BTU/lb LHV)

Biomass Price = 10% of Bunker Price

(3,591 BTU/lb HHV, 3,020 BTU/lb LHV)

Nuclear Fuel Price = (365 fuel + 400 fabrication) = 765 $/kg

(3,900 GJ/kg)

**CONVERSION FACTORS:**

1 kg = 2.2046 lb

1 MT = 1,000 kg

1 US gal = 3.7854 Liters

1 bbl = 42 US gal = 42 x 3.7854 = 158.9868 Liters

1 kWh = 3,600 kJ

1 BTU = 1.05506 kJ

1 GJ = 1,000,000 kJ

1 MMBTU = 1,000,000 BTU

**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

**Advanced Clean Coal**

Atmospheric Circulating Fluidized Bed (ACFB) – 350 MW, 0.0682 $/kWh

Pressurized Fluidized Bed Combustion (PFBC) – 550 MW, 0.0642 $/kWh

Integrated Gasification Combine Cycle – 250 MW, 0.0617 $/kWh

**Nuclear Power (uranium)**

Boiling Water Reactor (BWR) Advanced – 1,356 MW, 0.0869 $/kWh

Pressurized Water Reactor (PWR) Advanced – 1,460 MW, 0.0574 $/kWh

Pressurized Heavy Water Reactor (PHWR) Once Thru – 1,330 MW, 0.0535 $/kWh

Advanced Gas-cooled Reactor (AGR) – 1,100 MW, 0.0545 $/kWh

High Temperature Gas-cooled Reactor (HTGR) –

GT Modular Helium Reactor (GT-MHR) –

**Breeder Reactors (plutonium)**

**Hydro Power**

Large Hydro – 200 MW, 0.0949 $/kWh

Small / Mini Hydro – 30 MW, 0.0572 $/kWh

Micro Hydro – 0.10 MW, 0.1484 $/kWh

**Energy Storage**

Pumped Hydro – 1,800 MW, 0.3442 $/kWh

Compressed Air Energy Storage (CAES) – 350 MW, 0.1222 $/kWh

Flywheel Storage – 100 MW, 3.3012 $/kWh

USB Lead Acid Storage – 10 MW, 0.3206 $/kWh

USB Advanced Storage – 10 MW, 1.1229 $/kWh

SMES Storage – 100 MW, 3.2916 $/kWh

Ultracapacitors Storage – 1 MW, 37.3837 $/kWh

**Geothermal**

Flashed Steam – 50 MW, 0.0754 $/kWh

**Wind Farm – 40 MW, 0.0638** $/kWh

**Solar PV – 10 MW, 0.2325** $/kWh

**Solar Thermal**

Solar Thermal Trough – 80 MW, 0.2099 $/kWh

Solar Thermal Tower – 200 MW, 0.1737 $/kWh

Solar Thermal Dish + Sterling Engine – 0.5 MW, 0.2103 $/kWh

**Fuel Cells**

Phosphoric Acid Fuel Cell (PAFC) – 1 MW, 0.1245 $/kWh

Proton Exchange Member Fuel Cell (PEMFC) – 0.25 MW, 0.1048 $/kWh

Molten Carbonate Fuel Cell (MCFC) – 20 MW, 0.1084 $/kWh

Solid Oxide Fuel Cell (SOFC) – 3 MW, 0.0895 $/kWh

Solid Oxide Fuel Cell + GT Hybrid (SOFC-GT) – 5 MW, 0.0954 $/kWh

**Biomass Energy**

Biomass Direct Combustion – 1,000 MW, 0.0782 $/kWh

Co-Firing with Coal (20% coal) – 150 MW, 0.0387 $/kWh

Biomass Integrated Gasification Combined Cycle (BIGCC) – 30 MW, 0.0572 $/kWh

Municipal Solid Waste – 100 MW, 0.1679 $/kWh

Land Fill Gas – 3 MW, 0.0493 $/kWh

Sewage Digestion – 1 MW, 0.1831 $/kWh

**Ocean Wave – 0.5 MW, 0.0447** $/kWh

**Tidal Power – 100 MW, 0.2114** $/kWh

**If you need the Excel spreadsheet for the calculation of levelized cost of energy, including its data support, please email the author for arrangements:**

**Marcial Ocampo**

**Energy Technology and Pricing Expert**

**Business Development Consultant**

*(Friendly note: All content written by Engr. Marcial T. Ocampo are copyrighted and may not be redistributed in any way or form.)*

### 7 Responses to “Levelized Cost of Energy – sample calculation results”

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Levelized Cost of Energy - sample calculation results | Renewables BizSays:December 2nd, 2009 at 3:56 am

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Levelized Cost of Energy - sample calculation results | Renewables BizSays:December 2nd, 2009 at 3:56 am

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