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These are the values of problem 6 WACC = 10% CRF = 10.6%/yr Additional finnance

ID: 2079608 • Letter: T

Question

These are the values of problem 6

WACC = 10%

CRF = 10.6%/yr

Additional finnance charges = 0.06

FCR=16.6%/yr

Capital investment= $120 million

Annual fixed cost = $19.93 million/yr

Heat rate = 6203.6Btu/kWh

Rate power = 100MW

Annueal energy generated = 438x10^6 kWh/yr

Initial fuel cost = %8.15 million/yr

Initial O&M = $1.752million/yr

Levelized cost = $14.26million/yr

LCOE=$0.078/kWh

Suppose the utility in Problem 6 has 400 MW of combustion turbines operated as peaking power plants. How much energy will these turbines deliver (MWh/yr)? If these peakers have the "revenue required" curve shown below, what would the selling price of electricity from these plants (c/kWh) need to be?

Explanation / Answer

Given, a 400MW combustion turbine

(a) Energy delivered by these turbines = 0.4 * 400 * 365 = 58400Mwh/yr

(b) To calculat the revenue required for the given curve and values

LCOE = ((CapEx * FCR) + OpEx) / (AEpnet/1000)

0.078 = ((CapEx * 0.166) + 14.26 +0.26*14.26)/438*10^6

0.078*438*10^6 = CapEx*0.166 + 14.26*1.26

34164 = CapEx*0.166+17.9676

CapEx = $2.05 Million

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