12.07.2015 Views

Energy Systems and Technologies for the Coming Century ...

Energy Systems and Technologies for the Coming Century ...

Energy Systems and Technologies for the Coming Century ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

….. eq. 5LCOE is <strong>the</strong> net present value of total life time costs of <strong>the</strong> project divided by <strong>the</strong>quantity of energy produced over <strong>the</strong> system life. The levelized cost model used in thispaper has been represented in <strong>the</strong> figure 1. LCOE provides <strong>the</strong> in<strong>for</strong>mation on <strong>the</strong> relativecost competitiveness of technologies <strong>and</strong> a transparent method to show <strong>the</strong> key factorsaffecting <strong>the</strong> costs of different technologies (Allan et al., 2010; Gross et al., 2010).Metrological in<strong>for</strong>mation is important to look at <strong>the</strong> resource potential of any technology<strong>for</strong> a particular location. The parameters associated with <strong>the</strong> system reliability like lifespans of <strong>the</strong> component <strong>and</strong> system, system degradation rate (not considered in thispaper), plant outages are also important input in estimating LCOE. Similarly, <strong>the</strong>per<strong>for</strong>mance indicators such as system losses <strong>and</strong> efficiency, plant availability factors <strong>and</strong>load factors, financial parameters such as system capital cost, installation cost, operation<strong>and</strong> maintenance cost, discount rate, price escalation rates are also important factors indetermining <strong>the</strong> LCOE of any technologies. In this section we will discuss <strong>the</strong> method ofcalculating <strong>the</strong> levelized cost of various different technologies.RESOURCE AVAILABILITYMetrological data,RELIABILITYComponent <strong>and</strong> system lifeoutage, degradation costPERFORMANCEEfficiency, system loss, loadfactor, availability factorLevelized CostOfElectricityModelLCOEFINANCIAL DATASystem capital cost, installation,operation, fuel, replacement costs,discount rate, <strong>and</strong> escalation rate.Figure 1: LCOE ModelThe total life time cost of <strong>the</strong> project is <strong>the</strong> sum of <strong>the</strong> annualized capital investment (C c ).<strong>and</strong> <strong>the</strong> annualized production cost which is fur<strong>the</strong>r divided into fixed <strong>and</strong> variableoperational/maintenance cost (C om ), fuel cost (C f ) if applicable <strong>and</strong> <strong>the</strong> replacement cost(C r ) of <strong>the</strong> components those have shorter life span than <strong>the</strong> total life span of <strong>the</strong>evaluation period. This annualized cost is basically <strong>the</strong> discounted costs that incurredeach year <strong>and</strong> summed over <strong>the</strong> life. The amount of <strong>the</strong> useful electricity produced over<strong>the</strong> total life period of <strong>the</strong> system (E l ) is calculated by determining <strong>the</strong> annual electricityRisø International <strong>Energy</strong> Conference 2011 Proceedings Page 364

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!