MIT22_081JF10_pset4

# MIT22_081JF10_pset4 - Problem Set 4 Intro to Sustainable...

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Unformatted text preview: Problem Set 4 Intro to Sustainable Energy 2.650/10.291/22.081 & Sustainable Energy 1.818/2.65/10.391/11.371/22.811/ESD.166 For each of the problems you work out provide a list of sources for any data you used, as well as your assumptions. Be sure to mark which course number you are registered for on your solution. You can turn in the homework online (via Stellar) or in class. Intro to SE Students : Pick any 2 of the 4 problems to solve. SE Students : Pick 3 of the 4 problems to solve. 1. “Policy impact on process economics” A 1000 MWe power plant has an “overnight” cost of \$2 billion (i.e. the cost of hardware). In different political jurisdictions the treatments of the funds invested in the plant differ. Contrast the following two cases in terms of the total capital charge values incurred during construction. In each case assume that the plant is built over a 10-year interval, at a constant annual spending rate of \$200 million/year. A return to the utility company of 3.0% of the invested capital is allowed by the government. The annual rate of inflation is 4%. Case 1: The national government guarantees the loans used to finance the plant, resulting in a reduction of the interest rate charged by lenders of 2.0%. Also, the national government permits any funds expended to go into the electricity rate base immediately. This results in an additional 1.0% reduction in the interest rate charged by lenders....
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## This note was uploaded on 02/24/2012 for the course MECHANICAL 2.650J taught by Professor Johnc.wright during the Fall '10 term at MIT.

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MIT22_081JF10_pset4 - Problem Set 4 Intro to Sustainable...

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