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Use the LCOE calculator in the link below and the supplementary user guide and answer the questions below.
- Explain the main components of the LCOE formula and the benefits of this approach compared to other financial metrics such as NPV, IRR, and BCR.
Use the calculator to calculate the LCOE of each of the following technologies for a utility-scale power plant in California.
- Natural Gas Combined Cycle
- Pulverized Coal
- Note: Instructor can change the state and technology or assign different states and technologies to students.
Explain how each of the factors below impact the LCOE. How does a 10% increase and 10% reduction for each of these variables impact LCOE of solar, wind, NGCC, and coal
- Capacity factor
- Fuel cost
- System price
- Carbon emissions cost
- Provide an example of a policy in your province that would improve the LCOE of clean energy technologies