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An electric utility wants to compare the conventional combustion turbine with the wind farm for a 100 MW plant. In DC, the average price of
An electric utility wants to compare the conventional combustion turbine with the wind farm for a 100 MW plant. In DC, the average price of electricity in 2018 was 13.21 cents/kWh. Assume 1% of that would go to revenue for the utility. Using Table 2 in the EIA document, and for both technologies: a) What is the initial present value? b) What is the net present value after the first year? c) What is the net present value after 10 years? d) What were the assumptions you made in these calculations? An electric utility wants to compare the conventional combustion turbine with the wind farm for a 100 MW plant. In DC, the average price of electricity in 2018 was 13.21 cents/kWh. Assume 1% of that would go to revenue for the utility. Using Table 2 in the EIA document, and for both technologies: a) What is the initial present value? b) What is the net present value after the first year? c) What is the net present value after 10 years? d) What were the assumptions you made in these calculations
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