1) Levelized Cost of Electricity (LCOE) is a commonly used metric for power plant economics. A simplified equation for LCOE is It + Me + Ft (1+r) t=1 Et (1+r) t=1 = r 1 Investment expenditures in year t (including financing) M Operations and maintenance expenditures in year t F Fuel expenditures in year t E Electricity generation in year t Discount rate = Life of the system Assume that a nuclear plant can be built for a total cost of $6000/kW, in a 5-year period where the annual construction expenditures are equal each year ($1200/kW yr). The plant then operates for 60 years with fuel costs of $0.005/kWhr, annual operating costs of $150/kW yr, and a capacity factor of 90%. the discount rate is 8%, what is the LCOE ($/kWhr)? If a loan guarantee is available that reduces the discount rate to 3%, what is the LCOE? n 1) Levelized Cost of Electricity (LCOE) is a commonly used metric for power plant economics. A simplified equation for LCOE is It + Me + Ft (1+r) t=1 Et (1+r) t=1 = r 1 Investment expenditures in year t (including financing) M Operations and maintenance expenditures in year t F Fuel expenditures in year t E Electricity generation in year t Discount rate = Life of the system Assume that a nuclear plant can be built for a total cost of $6000/kW, in a 5-year period where the annual construction expenditures are equal each year ($1200/kW yr). The plant then operates for 60 years with fuel costs of $0.005/kWhr, annual operating costs of $150/kW yr, and a capacity factor of 90%. the discount rate is 8%, what is the LCOE ($/kWhr)? If a loan guarantee is available that reduces the discount rate to 3%, what is the LCOE? n