In this problem, we will calculate the levelized cost of electricity (LCOE) for a wind turbine and determine the sensitivity the LCOE of a wind turbine generating system to the parameters of capacity factor and initial cost. Assume that the wind power system costs $1,000 $/kW installed. To find the energy produced by the wind turbine, assume that the capacity factor is 25%. Further assume that 1 MW wind turbine is installed, that it will last 20 years, that the interest rate is 6% and that the operating costs are 0.5 cents/kWh.

a. What is the cost of electricity?

b. Perform a sensitivity analysis on the costing by increasing each parameter by 50%, and determining the change in COE.\r\n