Consider the investment in a wind turbine with the data below. You are told the fixed charge rate (FCR) does not include the cost of retirement, which is $250K at the end of year 30. You are also told that there is a production tax credit of $0.012/kWh. What is the LCOE for this turbine? Data Wind Turbine Purchase cost $1950/kW Installation cost $600,000 Levelized fixed charge rate 18% Plant rating 1.5 MW Capacity factor 0.30 Discount rate 8%
Consider the investment in a wind turbine with the data below. You are told the fixed charge rate (FCR) does not include the cost of retirement, which is $250K at the end of year 30. You are also told that there is a production tax credit of $0.012/kWh. What is the LCOE for this turbine? Data Wind Turbine Purchase cost $1950/kW Installation cost $600,000 Levelized fixed charge rate 18% Plant rating 1.5 MW Capacity factor 0.30 Discount rate 8%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Consider the investment in a wind turbine with the data below. You are told the fixed charge rate (FCR) does not include the cost of retirement, which is $250K at the end of year 30. You are also told that there is a production tax credit of $0.012/kWh. What is the LCOE for this turbine?
Data |
Wind Turbine |
Purchase cost |
$1950/kW |
Installation cost |
$600,000 |
Levelized fixed charge rate |
18% |
Plant rating |
1.5 MW |
Capacity factor |
0.30 |
Discount rate |
8% |
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