Question

5. (a) A 500 MW nuclear power generation station has been built in an area spending US$ 200 million. To meet the local demand, additional 300 MW power is necessary. Estimate the cost of the new plant (300 MW). Assume Cost-Capacity factor of 0.8.

(b) A power generation company has built 75 MW solar electricity generation plant with US$ 1.4 million in a remote area. To meet the local demand, additional 100 MW power is necessary. Estimate the cost of the new plant to meet the local demand (100 MW). Assume standard Cost-Capacity factor.

Answer 1

C2 = Required cost of Plant 2 with capacity Q2

C1 = Known cost of Plant 1 with capacity Q1

Q2 = Known capacity of Plant 2

Q1 = Known capacity of Plant 1

x = Cost capacity factor for technology of plant 2 and 1

C2/C1 = (Q2/Q1)^x

A.

C1 = US$ 200 million
Q2 = 300MW
Q1 = 500MW
x = 0.8

As per the above formula, the cost of Plant 2 with 300MW capacity = US$132.9 million

B.

C1 = US$1.4 million
Q2 = 100MW
Q1 = 75MW
x = 1

As per the above formula, the cost of Plant 2 with 300MW capacity = US$ 1.87 million