The basic information about the wind farm:
Wind farm capacity (MW) 50
Capital investment (€) 65 000 000
Period of operation (years) 20
Decommissioning costs (€) 3 000 000
O&M costs (€/kWh) 0.0091
Annual energy production (kWh) 110 000 000

Use the information given above to answer the following questions.

In order to make this calculation, we need to convert some of the information we have into annual figures:

The levelized cost of energy (LCOE) from a wind farm.
Once again, we need the capital cost of the wind farm (€) and the O&M costs in euro for each year (€/year) - calculated in exercise above. Finally, we will need the
decommissioning costs (€).

1. Again, using the NPV function, what is the present value of all the maintenance costs for the 20 years of operation (€)? Hint: For calculating NPV of costs, the sign of each annual entry should be negative. Note also that the initial capital investment should not be included here.
Electricity selling price, tariff (€/kWh) 0,075
Annual discount rate (%) 8

2. What is the present value of the payment cost made to decommission the wind farm (€)? Hint: Use the PV function but take care as the annual payment is zero and the decommissioning cost is the future value.
3. Finally, add these two together with the initial capital cost to give the present value of all the costs (€).
4. What is the levelized annual cost (€/year)?
5. What is the levelized cost of energy (LCOE) for the wind farm (€/kWh)?
6. What is this in €c/kWh?

  

What is the leveled annual cost (in €/yearLCoE€/kWh

1. What is the leveled cost of energy (LCoE€c/kWh and answer as an absolute value)?

2. What is the levellised cost of energy () for the wind farm (in and answer as an absolute value)?

3. in and answer as an absolute value?

Answer rating: 100% (QA)

Question 1 NPV OM 982796555 Stepbystep explanation we can calculate the present value by multiplying the nominal values with the discount factor Discount Factor 11rn where r discount rate and n the ye... View the full answer