Problem $10$

Determine the cost of electricity in US cents$/$kWh for a coal$-$fired power station of total capacity $500MW,$ with the following cost and energy data:

Initial annual $5-$years capital outlay $100,200,200,200$ and $100$ MUS$

Discount rate $10\%$ Jdivijuteo

$25$ years lifetime, assume salvage value of $50$ MUS$$.$

Annual O&M cost: $1\%$ of the total outlay $($i$.$e$.1\%$ of $700$ MUS $ $)$

Annual consumption of coal is $1$ million tons

$1$ ton of coal costs US $$50\mathrm{.}00$ and produce $2500kWh$ of energy

No inflation and real escalation of fuel

Assume that all the costs and the benefit occur at the end of each year. Note that after the final disbursement of capital cost the power plant is brought on$-$line hence the benefit, O&M and fuel costs are realized after one year of plant being in operation.

Problem $10$

Determine the cost of electricity in US cents$/$kWh for a coal$-$fired power station of total capacity $500MW,$ with the following cost and energy data:

Initial annual $5-$years capital outlay $100,200,200,200$ and $100$ MUS$

Discount rate $10\%$

$25$ years lifetime, assume salvage value of $50$ MUS$$.$

Annual O&M cost: $1\%$ of the total outlay $($i$.$e$.1\%$ of $700$ MUS$$)$

Annual consumption of coal is $1$ million tons

$1$ ton of coal costs US $$50\mathrm{.}00$ and produce $2500kWh$ of energy

No inflation and real escalation of fuel

Assume that all the costs and the benefit occur at the end of each year. Note that after the final disbursement of capital cost the power plant is brought on$-$line hence the benefit, O&M and fuel costs are realized after one year of plant being in operation.