Q2) Cost of a 600 kw wind turbine is $ 550000. Other initial costs including that for installation and grid integration are 30% of turbine cost. Useful life of the system is 20 years. Annual operation and maintenance costs plus the land rent come to 3.5% of the turbine cost. Calculate the NPV and COE for the turbine when it is installed at a site having a capacity factor of 0.25. The real rate of interest may be taken as 5%. Illustrate the effect of capacity factor on cost/kWh in the above example. If a utility company buys the generated electricity at a rate of $ 0.1/kWh, find out the break-even capacity factor.

Q2) Cost of a 600 kw wind turbine is $ 550000. Other initial costs including that for installation and grid integration are 30% of turbine cost. Useful life of the system is 20 years. Annual operation and maintenance costs plus the land rent come to 3.5% of the turbine cost. Calculate the NPV and COE for the turbine when it is installed at a site having a capacity factor of 0.25. The real rate of interest may be taken as 5%. Illustrate the effect of capacity factor on cost/kWh in the above example. If a utility company buys the generated electricity at a rate of $ 0.1/kWh, find out the break-even capacity factor.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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