A Wind power plant costs R14.50 billion to build and has an expected life of 25 years. The variable cost of producing one MWh of electricity is R35. If it operates 24 hours a day, 360 days a year at a capacity of 1500 MW on an interest rate of 4%? Determine the

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
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A Wind power plant costs R14.50 billion to
build and has an expected life of 25 years. The
variable cost of producing one MWh of
electricity is R35. If it operates 24 hours a day,
360 days a year at a capacity of 1500 MW on
an interest rate of 4%? Determine the
levelized cost of energy.
Transcribed Image Text:A Wind power plant costs R14.50 billion to build and has an expected life of 25 years. The variable cost of producing one MWh of electricity is R35. If it operates 24 hours a day, 360 days a year at a capacity of 1500 MW on an interest rate of 4%? Determine the levelized cost of energy.
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