1) Many power plants can last much longer than the 20-30 years assumed in most LCOE calculations, often 50 years or more. This affects the LCOE estimates for solar farms, where almost the entire LCOE is from capital costs that are multiplied by the CCF.

How much lower is the CCF for an 9% loan over a 60 year period compared to the same loan over a 30 year period?

For example, if the 60 year period has a CCF of .06 and the 30 year period has a CCF of .1, you’d answer 40%.

2) In the video on levelized cost of driving, Daniel mentioned that given how little most people drive in a year, they generally can save money by buying a cheaper car than a Prius even if it has higher fuel consumption. Let’s investigate that claim now, assuming a car similar to a Ford Fiesta. The capital cost to buy it is substantially lower, as are the yearly taxes and insurance, but the fuel consumption is about 50% higher.

• The car costs $15000 to buy.
• The capital charge factor is 0.23, the same as the Prius.
• The taxes, fees, and insurance each year total to $1100.
• You drive the car 20000 km/year, the same as the Prius.
• Variable operation and maintenance (VOM) costs add up to $0.018 per kilometer.
• Fuel costs $1.90 per liter.
• The car can travel 100 km on 7.2 L of fuel.

1) What is the total fixed cost in dollars per kilometer?

2) What is the variable cost in dollars per kilometer?

3) Is the total levelized cost higher or lower than the Prius (in the video above) given these assumptions? Enter the word "higher" or "lower". If the numbers are within 10% of each other, enter the word "same".

Answer rating: 100% (QA)

1 2 CCF for 25 year loan 1 Annuity Facto... View the full answer