Which of the following is a characteristic of levelized cost of energy (LCOE)?(1 point)
Responses
A. It is the minimum amount of power that can be produced per dollar over the lifetime of a power-generating project.
B. It is the minimum price per kWh at which electricity must be sold in order to break even over the lifetime of a power-generating project.
C. It is the maximum price per kWh at which electricity must be sold in order to break even over the lifetime of a power-generating project.
D. It is the maximum amount of power that can be produced per dollar over the lifetime of a power-generating project.
B. It is the minimum price per kWh at which electricity must be sold in order to break even over the lifetime of a power-generating project.
A solar energy project is expected to have capital costs of $785,000, average yearly operating costs of $123,000, and a lifetime of 25 years. If the estimated yearly production during the lifetime of the project is 3,580,000 kWh, what is the levelized cost of energy (LCOE)?(1 point)
Responses
A. 0.220
B.0.253
C. 1.078
D. 0.043
To calculate the Levelized Cost of Energy (LCOE), we first need to determine the total cost of the project over its lifetime, and then divide by the total amount of electricity generated over the same time period.
Total cost = Capital costs + (Average yearly operating costs * Lifetime)
Total cost = $785,000 + ($123,000 * 25)
Total cost = $785,000 + $3,075,000
Total cost = $3,860,000
Now, calculate the Levelized Cost of Energy (LCOE):
LCOE = Total cost / Total electricity generated
LCOE = $3,860,000 / 3,580,000 kWh
LCOE = $3,860,000 / 3,580,000
LCOE = 1.078
Therefore, the correct answer is:
C. 1.078
Which of the following statements is true for both solar energy and wind energy?(1 point)
Responses
A. Power from this energy source can easily be integrated into existing power grid systems.
B. Energy collection equipment can be installed in agricultural areas without affecting crop production.
C. Power generation using this energy source does not contribute to water pollution.
D. Energy is able to be collected both day and night.