Show sufficient work You are required to submit a report that explains with sufficient level of detail how the results are obtained. Also, you need to submit your codes (if any). Everything should be submitted on BB in a single zipped file. Data Consider the following fuel cell options: Type Capacity Investment Cost (kW) A 250 B 100 ($/kW) 4000 2500 Operating Energy Lifetime Conversion (hours) (kWh/kgH2) (%) 60,000 50,000 Eff. H2 Fixed Cost O&M Cost ($/kgH2) ($/kW-year) 60 60 33.3 5 40 90 The peak load of the existing system (i.e. year 0) and the next 4 years is expected to be 500 kW. The discount rate is taken to be 6%. The salvage value (before discounting), SV, is modeled using the following formula: SV Inv* (1-a), where PW is the investment cost of the asset, α = 25% is the depreciation rate, and N is the number of years the FC has been in service. Requirements You are required to devise a 5-year plan (years 0-4) (i.e. determine the number and type of fuel cells (FC) that needs to be installed each year such that the levelized cost of energy (LCOE) in $/kWh is minimized and all constraints are met. Also, determine the corresponding LCOE). Consider the following two cases: a. Consider the load to be flat throughout the year at the peak load level. b. Consider the load to have a load factor of 52%.
Show sufficient work You are required to submit a report that explains with sufficient level of detail how the results are obtained. Also, you need to submit your codes (if any). Everything should be submitted on BB in a single zipped file. Data Consider the following fuel cell options: Type Capacity Investment Cost (kW) A 250 B 100 ($/kW) 4000 2500 Operating Energy Lifetime Conversion (hours) (kWh/kgH2) (%) 60,000 50,000 Eff. H2 Fixed Cost O&M Cost ($/kgH2) ($/kW-year) 60 60 33.3 5 40 90 The peak load of the existing system (i.e. year 0) and the next 4 years is expected to be 500 kW. The discount rate is taken to be 6%. The salvage value (before discounting), SV, is modeled using the following formula: SV Inv* (1-a), where PW is the investment cost of the asset, α = 25% is the depreciation rate, and N is the number of years the FC has been in service. Requirements You are required to devise a 5-year plan (years 0-4) (i.e. determine the number and type of fuel cells (FC) that needs to be installed each year such that the levelized cost of energy (LCOE) in $/kWh is minimized and all constraints are met. Also, determine the corresponding LCOE). Consider the following two cases: a. Consider the load to be flat throughout the year at the peak load level. b. Consider the load to have a load factor of 52%.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 1E
Related questions
Question
Please correct answer and don't use hand rating
Transcribed Image Text:Show sufficient work
You are required to submit a report that explains with sufficient level of detail how the results are
obtained. Also, you need to submit your codes (if any). Everything should be submitted on BB in a single
zipped file.
Data
Consider the following fuel cell options:
Type Capacity Investment
Cost
(kW)
A
250
B
100
($/kW)
4000
2500
Operating Energy
Lifetime Conversion
(hours) (kWh/kgH2) (%)
60,000
50,000
Eff.
H2
Fixed
Cost
O&M Cost
($/kgH2) ($/kW-year)
60
60
33.3
5
40
90
The peak load of the existing system (i.e. year 0) and the next 4 years is expected to be 500 kW.
The discount rate is taken to be 6%.
The salvage value (before discounting), SV, is modeled using the following formula:
SV Inv* (1-a), where PW is the investment cost of the asset, α = 25% is the depreciation rate,
and N is the number of years the FC has been in service.
Requirements
You are required to devise a 5-year plan (years 0-4) (i.e. determine the number and type of fuel cells
(FC) that needs to be installed each year such that the levelized cost of energy (LCOE) in $/kWh is
minimized and all constraints are met. Also, determine the corresponding LCOE).
Consider the following two cases:
a.
Consider the load to be flat throughout the year at the peak load level.
b. Consider the load to have a load factor of 52%.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co