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Regulatory and policy options to encourage development of ...

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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING MANUALpage 9.50Capacity (kW p) 2Full load hours/year 1250Investment cost (€/kW p) 6500Operation <strong>and</strong> maintenance 0cost (€/kW e/year)Interest rate r (per cent) 6.5Duration <strong>of</strong> support t (years) 20Feed-in tariff (€/kWh) ?Income/year2 (kW) * 1250 (hrs) * FIT (€/kWh)Investment cost 2 (kW) * 6500 (€/kW) = 13.000 €Calculation <strong>of</strong> the feed-in tariff∑ [(2.500 * FIT) / (1,065) t ] – 13.000 = 0FIT = 0.470 €/kWh = 470 €/MWhBi<strong>of</strong>uelAn example <strong>of</strong> a 10,000 kW einstallation is considered using bi<strong>of</strong>uel (palm oil) 9 in a condensingsteam turbine.Capacity (kW e) 10,000Full load hours/year 6000 10Investment cost (€/kW e) 800Operation <strong>and</strong> maintenance 120cost (€/kW e/year)Fuel cost (€/GJ) 10 11Interest rate r (per cent) 6.5Duration <strong>of</strong> support t (years) 10Feed-in tariff (€/kWh) ?9ECN-C—05-016 – Small-scale independent electricity installations using biomass (2005), www.ecn.nl.VITO – Onrendabele <strong>to</strong>ppen van duurzame elektriciteitsopties in Vla<strong>and</strong>eren (2005), www.energiesparen.be10In principle even higher full load hours (>7000) are reachable, provided there is a continuous fuelsupply (generally guaranteed through contracts). In reality, such installations do not always run atfull capacity yet <strong>and</strong> need regular s<strong>to</strong>ps for maintenance.11The price <strong>of</strong> crude palm oil in January 2007 was circa 360 euros/<strong>to</strong>n CPO (www.mpoc.org.my). Ifthen an energy content <strong>of</strong> 37 GJ/<strong>to</strong>n is assumed, the cost per <strong>to</strong>n comes at circa 10 euros.

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