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APPENDIX A – LCOE CALCULATION METHOD This project utilized the levelized cost of energy calculation methodology described in A Manual for the Economic Evaluation for Energy Efficiency and Renewable Energy Technologies (Short et al. 1995) and included updates unique to the U.S. wind industry based on NREL’s 2017 Cost of Wind Energy Review, (Stehly et al. 2018). For wind energy, the LCOE calculation and variables are:

LCOE =

Where:

(CapEx × FCR) + OpEx (AEPnet /1,000)

LCOE = levelized cost of energy ($/megawatt-hour [MWh]) FCR = fixed charge rate (%) CapEx = capital expenditures ($/kilowatt [kW]) AEP net = net average annual energy production (MWh/megawatt [MW]/year [yr]) OpEx = operational expenditures ($/kW/yr).

For the Baseline turbine, LCOE input variables were determined as follows: FCR: •

7.9% per U.S. DOE project team guidance

CapEx •

Blade costs calculated by DNV GL

Blade transportation costs based on industry partners estimates

Turbine (less blades) costs derived from NREL’s WISDEM model values recalibrated to $800/kW market reference from Wood Mackenzie

Tower costs derived from WISDEM model

Turbine (less blades) and tower transportation costs based on industry partner estimates

Complete turbine, rotor and tower assembly costs derived from WISDEM model

Balance of station costs, development costs, land costs, etc. derived from WISDEM model for 150 MW project

Baseline total project CapEx result = $1,768/kW Michigan; $1,260/kW Montana

AEP net: •

DNV GL calculation based on blade design and power curves; site-specific wind speed from NREL

Typical losses were applied to account for availability, soiling, wakes, turbine performance, environmental, and curtailments derived from DNV GL’s experience accumulating to 20%.

OpEx: •

DNV GL calculation based on our OMCAM cost model version 2-10

DNV GL – Document No.: 10080081-HOU-R-01, Issue: C, Status: FINAL www.dnvgl.com

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Supersized wind turbine blade study  

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