lecture24 - Power Plant Cost Levelized costs Cost of power...

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ENGRI 1290 1 Power Plant Cost Levelized costs Cost of power plants
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ENGRI 1290 2 Levelized Costs Capital costs (investment for construction and startup): I(t) Operation and Maintenance (O&M): M(t) Fuel costs: F(t) Transmission lines to reach the customers To assess the cost of a certain type of power plant, we need to take into account at a year t: But most facilities need to work for 30 to 40 years (lifetime n). This requires to take into account: = = ++ ⎡⎤ +− ⎣⎦ = n t 2 t1 levelized n t 2 I(t) M(t) F(t) 1ii C E(t) E(t) is the amount of electricity generated at year t 2008 US average electrical cost was 10c/kWh, so a levelized cost higher than 100$/MWh is not economical (NY state is 18c/kWh). Inflation = loss of money value overtime (taken into account by using a year of reference) Interest rate i =cost to borrow money
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ENGRI 1290 3 The impact of some technology on levelized costs • Combined Cycles (CC) – Residual heat from fuel is used to also produce energy Advanced Designed
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lecture24 - Power Plant Cost Levelized costs Cost of power...

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