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%

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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  1. 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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