Question: how do you create a DCF for This data 1 General Information Detail Units Notes Source Spread evenly over years of construction with outlay for

 how do you create a DCF for This data 1 General how do you create a DCF for This data

1 General Information Detail Units Notes Source Spread evenly over years of construction with outlay for each year occurring at the start of given year. Initial outlay at 2021. 4 years iea, p.12 2 Construction time 3 Years of construction 4 Life after construction 2021-2024 35 years Jacobs, p.122 5 Output 6 Emissions 7 Capital cost 8 Cost of fuel (black coal) 9 Heat rate 10 Variable fuel operating costs 11 Variable non-fuel operating cost 743 MW 0.7 t of CO2-e/MWh 3076000 $/MW 2.25 $/GJ 8.85 GJ/MWh 19.91 S/MWh 1.60 S/MWh After plant is complete Mega Watt (MW) is an instantaneous output. So at full output for 1 hour, the plant is said to produce 743MW hours (MWh). Total output for year = MWh x 24 x 365 x Available Capacity Factor Note: Total Outlay = Output x Capital Cost per MW Average from Graph Jacobs, p.122 Finkel, p.203 Jacobs, p.122 Jacobs, p.39 Jacobs, p.122 Penn State, 3.1.2 Jacobs, p.122 VC =$/GJ x Heat Rate. Note: Total Fixed Operating costs = Output x Fixed Operating cost per MW 12 Fixed operating cost 13 Schedule maintenance 14 Effective outage rate 15 Available capacity factor 16 Coal inventory days 17 Coal inventory 18 Spare parts inventory 87000.00 $/MW/year 2.00 Weeks p.a. 5.00% p.a. 91.15% p.a. 60 days 21,304,782 $ 2,000,000 $ Jacobs, p.122 Jacobs, p. 120 Jacobs, p. 120 Jacobs, p. 120 (52-Maintenance Weeks)/52 - Outage Rate Coal is stored on site 23,304,782 $ Straight-Line Initial working capital investment occurs at the beginning of first full year of operations Straight-line over operating life (life after construction) Assumed $0 due to costs of demolition 100,000,000 $ 30% Paid the year of income 19 Working capital 20 Depreciation 21 Salvage 22 Site rectification 23 Tax 24 Business as usual (BaU) information 25 Price of electricity under Bau 26 Cost of capital under Bau 27 Emission Intensity Scheme (EIS) information 28 Price of electricity under EIS 29 Cost of capital under EIS 85 S/MWh 9.5% p.a. Average from Graph Jacobs, p. 51 72 S/MWh 9.5% Average from Graph Jacobs, p.51 30 EIS baseline 0.6 t of CO2-e/MWh Jacobs, p. 24 Permits earned for year Total Annual Output MWhx (EIS baseline Emission per MWh) Price of ElS permit is in first year of production as it takes 4 years to build power station (2021-2024) Compounded growth 17.71 $/permit 5.7% p.a. Jacobs, p. 52 Jacobs, p. 52 31 Price per Els permit first year production (2025) 32 EIS certificate annual compounded growth 33 Additional Values 34 Hours 35 Days 24.0 per day 365.0 per year 1 General Information Detail Units Notes Source Spread evenly over years of construction with outlay for each year occurring at the start of given year. Initial outlay at 2021. 4 years iea, p.12 2 Construction time 3 Years of construction 4 Life after construction 2021-2024 35 years Jacobs, p.122 5 Output 6 Emissions 7 Capital cost 8 Cost of fuel (black coal) 9 Heat rate 10 Variable fuel operating costs 11 Variable non-fuel operating cost 743 MW 0.7 t of CO2-e/MWh 3076000 $/MW 2.25 $/GJ 8.85 GJ/MWh 19.91 S/MWh 1.60 S/MWh After plant is complete Mega Watt (MW) is an instantaneous output. So at full output for 1 hour, the plant is said to produce 743MW hours (MWh). Total output for year = MWh x 24 x 365 x Available Capacity Factor Note: Total Outlay = Output x Capital Cost per MW Average from Graph Jacobs, p.122 Finkel, p.203 Jacobs, p.122 Jacobs, p.39 Jacobs, p.122 Penn State, 3.1.2 Jacobs, p.122 VC =$/GJ x Heat Rate. Note: Total Fixed Operating costs = Output x Fixed Operating cost per MW 12 Fixed operating cost 13 Schedule maintenance 14 Effective outage rate 15 Available capacity factor 16 Coal inventory days 17 Coal inventory 18 Spare parts inventory 87000.00 $/MW/year 2.00 Weeks p.a. 5.00% p.a. 91.15% p.a. 60 days 21,304,782 $ 2,000,000 $ Jacobs, p.122 Jacobs, p. 120 Jacobs, p. 120 Jacobs, p. 120 (52-Maintenance Weeks)/52 - Outage Rate Coal is stored on site 23,304,782 $ Straight-Line Initial working capital investment occurs at the beginning of first full year of operations Straight-line over operating life (life after construction) Assumed $0 due to costs of demolition 100,000,000 $ 30% Paid the year of income 19 Working capital 20 Depreciation 21 Salvage 22 Site rectification 23 Tax 24 Business as usual (BaU) information 25 Price of electricity under Bau 26 Cost of capital under Bau 27 Emission Intensity Scheme (EIS) information 28 Price of electricity under EIS 29 Cost of capital under EIS 85 S/MWh 9.5% p.a. Average from Graph Jacobs, p. 51 72 S/MWh 9.5% Average from Graph Jacobs, p.51 30 EIS baseline 0.6 t of CO2-e/MWh Jacobs, p. 24 Permits earned for year Total Annual Output MWhx (EIS baseline Emission per MWh) Price of ElS permit is in first year of production as it takes 4 years to build power station (2021-2024) Compounded growth 17.71 $/permit 5.7% p.a. Jacobs, p. 52 Jacobs, p. 52 31 Price per Els permit first year production (2025) 32 EIS certificate annual compounded growth 33 Additional Values 34 Hours 35 Days 24.0 per day 365.0 per year

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