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16. Suppose an enterprising team of researchers at GA Tech invent a new technology for generating electricity at utility scale without emitting carbon. Since the

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16. Suppose an enterprising team of researchers at GA Tech invent a new technology for generating electricity at utility scale without emitting carbon. Since the technology is new, it is very expensive - and so is its fuel. However, the heat rate at which the technology turns fuel into usable energy) is incredible. Furthermore, the new generator design has almost un-interrupted up-time - as evidenced by the high capacity factor - though it does have high Operations and Maintenance (O&M) costs associated with attaining that up-time. Rapid growth in the area combined with the retirement of 300 MW of Coal-fueled generation necessitate an investment in new generation. Use the two generator projects described in table 1 to answer the questions. Table 1: Hypothetical generator project costs. NOTE: there are 1 Million Btu in an MMBtu. New Technology Gas - Combined Cycle 450 500 $3000 $720 Fixed O&M SKW $13.50 $5.80 Variable O&M S/MWh $5.00 $2.50 900 6,800 80 $3.45 20 0.080 Project Size MW Total Capital Cost SAW Heat Rate BrukWh Capacity Factor% Fuel Price S/MMBI Life Span Years CRF 95 12 10 0.13 16. (10 points) Calculate the LCOE for each generation project. NOTE: There are 1 Million Btu in an MMBtu. Show your work! 166. (3 points) Make a policy recommendation - for each generator, assess whether it should be built and why or why not? 16. Suppose an enterprising team of researchers at GA Tech invent a new technology for generating electricity at utility scale without emitting carbon. Since the technology is new, it is very expensive - and so is its fuel. However, the heat rate at which the technology turns fuel into usable energy) is incredible. Furthermore, the new generator design has almost un-interrupted up-time - as evidenced by the high capacity factor - though it does have high Operations and Maintenance (O&M) costs associated with attaining that up-time. Rapid growth in the area combined with the retirement of 300 MW of Coal-fueled generation necessitate an investment in new generation. Use the two generator projects described in table 1 to answer the questions. Table 1: Hypothetical generator project costs. NOTE: there are 1 Million Btu in an MMBtu. New Technology Gas - Combined Cycle 450 500 $3000 $720 Fixed O&M SKW $13.50 $5.80 Variable O&M S/MWh $5.00 $2.50 900 6,800 80 $3.45 20 0.080 Project Size MW Total Capital Cost SAW Heat Rate BrukWh Capacity Factor% Fuel Price S/MMBI Life Span Years CRF 95 12 10 0.13 16. (10 points) Calculate the LCOE for each generation project. NOTE: There are 1 Million Btu in an MMBtu. Show your work! 166. (3 points) Make a policy recommendation - for each generator, assess whether it should be built and why or why not

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