The project has an installed power capacity of 2.5 MW and initial investments of USD2,500,000. The costs and cash flow scenario for this project are shown below.

A.What is the value of the incentive received for this project given the TLCC value is USD$2,571,616? [3 marks]

B.Clearly, state a full equation (with the respective units) to determine the LCOE. Briefly discuss all components of this equation. [3 marks]

C.Given an LCOE value of USD$ 0.07/kWh, determine the capacity factor. [3 marks]

Table 2 Costs and cash flow for the

Proposed 2.5 MW Project

Year	O&M Costs USD$	Present value of O & M Costs USD$
0	0	0
1	35,700
2	36,400
3	37,100
4	37,900
5	38,600
6	39,400
7	40,200	15,112.67
8	41,000
9	41,800
10	42,600