Levelized cost of electricity calculator : a user guide


Comello, Stephen ; Glenk, Gunther ; Reichelstein, Stefan



URL: https://web.stanford.edu/dept/gsb_circle/cgi-bin/s...
Dokumenttyp: Arbeitspapier
Erscheinungsjahr: 2017
Ort der Veröffentlichung: Stanford, CA
Verlag: Stanford Graduate School of Business
Sprache der Veröffentlichung: Englisch
Einrichtung: Fakultät für Betriebswirtschaftslehre > Stiftungsprofessur für ABWL (Reichelstein 2018-)
Fachgebiet: 330 Wirtschaft
Abstract: Description The economics of electricity generating facilities is determined by range of parameters includ- ing, including upfront investment, operating expenses and capacity factors. The Levelized Cost of Electricity (LCOE) is a metric commonly used to compare the cost competitive- ness of alternative electricity generating platforms. Our LCOE calculator seeks to provide a simple, flexible and transparent tool that enables users to quickly determine the LCOE for different generation technologies, segments and geographic locations within the United States. The generation technologies assessed in this tool include renewable energy sources, in partic- ular solar photovoltaic (PV) and wind power, in addition to fossil fuel power plants including natural gas combined cycle (NGCC) and pulverized coal. For solar PV, our LCOE tool also differentiates segments according to utility scale, commercial and residential installations. The LCOE for each technology-segment combination is determined for a specific U.S. state, where currently the user can choose one from a list of eleven. 1 For each technology-segment combination in a given U.S. state, the default input values for the fourteen components of the LCOE are displayed. The input variables considered are: • Useful Life • Tax Depreciation Method • System Price (Cost of Capacity) • Investment Tax Credit • Production Tax Credit • Capacity Factor • System Degradation Factor • Fixed Operation and Maintenance Cost • Variable Operation and Maintenance Cost • Fuel Cost • Carbon Dioxide Emission Charges (Allowance Cost) • Emissions Performance (Carbon Intensity) • Cost of Capital (Discount Rate) • Effective Corporate Tax Rate The tool allows each input value to be freely adjusted to recalculate the LCOE, so as to perform a sensitivity analysis relative to the default values. The remainder of this user document is organized as follows. Section 2 provides instruction on how to use the LCOE tool. Section 3 outlines the data sources that provide the inputs to the default component values. The analytical background and relevant equations are provided in Section 4.




Dieser Datensatz wurde nicht während einer Tätigkeit an der Universität Mannheim veröffentlicht, dies ist eine Externe Publikation.




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