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Levelized Cost of Energy – sample calculation results

October 16th, 2009 Posted in levelized cost of energy

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:

http://energytechnologyexpert.com/cost-of-power-generation/how-to-calculate-the-levelized-cost-of-power-or-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

mars_ocampo@yahoo.com

energydataexpert@gmail.com

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

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