Question

In: Operations Management

LCOE for Wave Dragon 15 yrs, 5% interest  Cost + Installation = $10 million, O&M = 0.15M/year   Energy...

LCOE for Wave Dragon 15 yrs, 5% interest  Cost + Installation = $10 million, O&M = 0.15M/year   Energy = 100,000,000 kWh/yr        LCOE = ______________$ kWhr

Solutions

Expert Solution

LCOE = 0.01 $/kWhr

LCOE(Levelized cost of energy) measures lifetime costs divided by energy production. It calculates present value of the total cost of building and operating a power plant over an assumed lifetime.

Please refer to the images given below for detailed steps and calculations :

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