"2. For three generation facilities A, B and C with the details giver; ammg an interest rate of 10% and the possibility of choosing any generation capacity of the above mentioned technologies (A, B and C), find out the GEP results (type and capacity) for each of the following cases. In each case, calculate the investment cost (in R_) as well as the operation cost (in year). Annualized Investment Calculatidrl'dW Capacity Reference, 2.0 Yr. study period, 10% Discount Rate Type AUnit- Installation Cost I $400,000 [MW, 30 Yr. Life Expectancy, Production Cost - $18 MWh Let A20: 20 Yr. Annualized Cost for a 1 MW Type A Unit Let A30: 30 Yr. Annualized Cost for a 1 MW Type A Unit Let F'o = Present Value in Yr. 20 for years 20 to 3039f A Let A10: 20 Yr. Annualized cost 51720 Then A30: $400,000*(AIPV, 10%, 30) 3 $42,432 FVZO = A30*(PFIA, 10, 10) = $260,725 A10: FVzo*(AfFV, 10, 2.0) : $4,552 and A20 : A30- A10 2 $37,880 Type B Unit- Installation Cost = $300,000 [MW, 20 Yr. Life Expectancy, Production Cost - $20 fMWh Let Em : 20 Yr. Annualized Cost for a 1 MW Type B Unit Then: 30: $300,000*(AIPV, 10%, 20) = $35,238 Type C Unit- Installation Cost 2 $250,000 ,I'MW, 25 Yr. Life Expectancy, Production Cost - $26 fMWh Let Q0 = 20 Yr. Annualized Cost for a 1 MW Type C Unit Let (3.5 : 25 Yr. Annualized Cost for a 1 MW Type C Unit Let F'o = Present Value in Yr. 20for years 20 to 3529f Let Q : 20 Yr. Annualized cost 51120 Then C25: $250,000*(AIPV, 10%, 25) : $27,542 FVzo : C25*(PF/A, 10,5} = $104,406 C5 3 FV20*(A./FV, 10, 20) 3 $1,823 and C20: C25- C5 : $25,719 In each of the following parts the Total Cost Function : Annualized Inv. Cost + Production Cost, where the production cost is determined by the merit order of dispatch for the selected units. The annualized Inv. Cost term is determined by the number of 1 MW increments for each type of unit considered times the per MW annualized Inv. Cost. The Production cost for the stated load and duration is determined by the merit order of dispatch for the types of units considered to meet the total capacity requirement of 3 MW in all parts a, b, c, and d. This problem could be solved as a mixed integer optimization problem; however, here the solution will be a bruit force computation of the Total Cost for each combination of 1 MW unit type incremenlllhiongideoadh is facilitated in part because there are only 10 total combinations of unit type commitments that are possible for t] given dispatch scenarisso has the advantage of exposing the detailed interim calculation results. In all parts to this problem the Total Cost function represents a trade-off between the Fixed Inv. Cost and the variable production cost under a merit order dispatch (i.e. the minimum dispatch cost) for each unit type configuration
