1. This problem is intended to assess the relative economic merits of installing a wind - diesel...
Question:
- 1. This problem is intended to assess the relative economic merits of installing a wind-diesel system rather than a diesel-only system at a hypothetical location. Assume that the existing diesel is due for replacement and that the annual system demand will remain fixed during the lifetime of the project. Your problem is to calculate the levelized cost of energy for the diesel only and for the wind-diesel system. The following system and economic parameters hold:
System Average system load: 96 kW (841,000 kWh/yr) Diesel rated power: 200 kW Mean diesel usage- no wind turbine generator: 42.4 L/hr (371,000 L/yr) Wind turbine rated power: 100 kW Average annual wind speed: 7.54 m/s Annual wind speed variability: 0.47 Average wind turbine power: 30.9 kW Useful wind turbine power (based on 25% lower limit on diesel loading): 21.1 kW Mean diesel usage with WTG: 34.8 L/hr (305,000 L/yr) | Economics Wind turbine cost: $1500/kW installed Diesel cost: $350/kW installed System life: 20 yr Initial payment: $30,000 Loan term: 10 yr Interest: 10% General inflation: 5% Fuel inflation: 6% Discount rate: 9% Diesel fuel cost: $0.50/L Wind turbine O&M cost: 2% of capital cost/yr Diesel O&M cost: 5% of capital cost/yr |
Note: Add the NPVc of fuel costs when you evaluate the wind-diesel system by adding the following term to the expression for NPVc. [FL = Fuel consumption (units/yr), FC = Fuel Cost ($/unit), e = fuel inflation rate].
Automation Production Systems and Computer Integrated Manufacturing
ISBN: 978-0132393218
3rd edition
Authors: Mikell P.Groover