A 100 MW combined-cycle plant with a heat rate of 7700 Btu/kWh operates with a 75% capacity factor. Natural gas fuel now costs $5 per million Btu. Annual 0&M is $0.004/kWh. The capital cost of the plant is $600/kW. The utility uses a fixed charge rate (FCR) of 0.13/yr. What is the annualised capital cost of the plant ($/yr)? b. What is the annual electricity production (kWh/yr)? c. What is the annual fuel and O&M cost ($/kWh)? d. What is the current cost of electricity from the plant ($/kWh)? If fuel and O&M costs escalate at 5% per year and the utility uses a discount rate of 0.15/yr, what will be the levelised busbar cost of electricity from this plant over its 30-year life? a. е.

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A 100 MW combined-cycle plant with a heat rate of 7700 Btu/kWh operates with a 75% capacity
factor. Natural gas fuel now costs $5 per million Btu. Annual 0&M is $0.004/kWh. The capital cost of
the plant is $600/kw. The utility uses a fixed charge rate (FCR) of 0.13/yr.
What is the annualised capital cost of the plant ($/yr)?
b. What is the annual electricity production (kWh/yr)?
c. What is the annual fuel and 0&M cost ($/kWh)?
d. What is the current cost of electricity from the plant ($/kWh)?
If fuel and 0&M costs escalate at 5% per year and the utility uses a discount rate of 0.15/yr,
what will be the levelised busbar cost of electricity from this plant over its 30-year life?
a.
e.
Transcribed Image Text:A 100 MW combined-cycle plant with a heat rate of 7700 Btu/kWh operates with a 75% capacity factor. Natural gas fuel now costs $5 per million Btu. Annual 0&M is $0.004/kWh. The capital cost of the plant is $600/kw. The utility uses a fixed charge rate (FCR) of 0.13/yr. What is the annualised capital cost of the plant ($/yr)? b. What is the annual electricity production (kWh/yr)? c. What is the annual fuel and 0&M cost ($/kWh)? d. What is the current cost of electricity from the plant ($/kWh)? If fuel and 0&M costs escalate at 5% per year and the utility uses a discount rate of 0.15/yr, what will be the levelised busbar cost of electricity from this plant over its 30-year life? a. e.
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