Suppose BJTU is going to build a generation station for

Suppose BJTU is going to build a generation station for the school campus. Find the LCOE for each resource. 


Requirements: 

Capacity 500 MW, Operating 24h/day, 360 days/yr, project life: 30 years Assume the loan will be paid back evenly throughout the project lifetime. Use 5% discount rate for both resources.

a. Resource A: Initial investment $250,000 from school reserve funding (i.e., no interest), $500,000 loan at 2% yearly interest, average O&M cost $50,000/year, average fuel cost $20,000/year 

b. Resource B: Initial investment $200,000 loan at 3% yearly interest, average O&M cost $75,000/year, average fuel cost $100,000/year


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