A proposed coal power plant has a capital cost of $2640 per kW of generating capacity. It
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A proposed coal power plant has a capital cost of $2640 per kW of generating capacity. It is expected to run for 94% of the year. Its overall thermal efficiency is 36%. Fixed operations and maintenance (FOM) costs have been estimated at $48/kW-year, and variable O&M costs have been estimated at $0.006/kWh. Coal costs $1.0/GJ. The capital charge factor (or capital charge rate) is 9%.
What is the levelized cost of electricity for this plant? We'll cover how to do calculations like this in the course, so don't worry if you struggle. Give it your best effort but please don't spend more than 10 minutes on it.
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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