Calculate Levelized Cost of Electricity (LCOE)¶

This examples show how to calculate the LCOE in a simplified and explicit version.

Workflow:

1. Load required packages
2. Simple LCOE calculation
3. Explicit LCOE calculation

In [1]:

import reskit as rk

import reskit as rk

Simple levelized cost of electricity (LCOE) calculation¶

Follows: $\mathrm{LCOE} = C * \frac{ (r/(1-(1+r)^{-N})) + O_c }{P_{mean}}$

Where:

• $C$ is the capital expenditure [€]
• $O_c$ is the fixed operating costs (given as a factor of the capex)
• $P_{mean}$ is the average production in each year [kWh]
• $r$ is the discount rate
• $N$ is the economic lifetime [years]

In [2]:

# Compute LCOE

wind_turbine_capacity = 2700  # Assume a 2.7 MW turbine
wind_turbine_capex = wind_turbine_capacity * 1000  # assume 1000 €/kW
wind_turbine_full_load_hours = 2300  # assume 2300 hours

wind_turbine_generation = wind_turbine_capacity * wind_turbine_full_load_hours

lcoe = rk.util.levelized_cost_of_electricity_simplified(
    capex=wind_turbine_capex,
    mean_production=wind_turbine_generation,
    lifetime=20,  # Assume 20 years,
    discount_rate=0.08,  # Assume 8% interest
    opex_per_capex=0.02,  # Assume opex is 2% of capex
)

print(" LCOE is {:.5f} €/kWh".format(lcoe))

# Compute LCOE wind_turbine_capacity = 2700 # Assume a 2.7 MW turbine wind_turbine_capex = wind_turbine_capacity * 1000 # assume 1000 €/kW wind_turbine_full_load_hours = 2300 # assume 2300 hours wind_turbine_generation = wind_turbine_capacity * wind_turbine_full_load_hours lcoe = rk.util.levelized_cost_of_electricity_simplified( capex=wind_turbine_capex, mean_production=wind_turbine_generation, lifetime=20, # Assume 20 years, discount_rate=0.08, # Assume 8% interest opex_per_capex=0.02, # Assume opex is 2% of capex ) print(" LCOE is {:.5f} €/kWh".format(lcoe))

 LCOE is 0.05298 €/kWh

---

Explicit levelized cost of electricity (LCOE) calculation¶

Follows: $\mathrm{LCOE} = \sum{\frac{exp_y}{(1+r)^y}} / \sum{\frac{prod_y}{(1+r)^y}}$

Where:

• $exp_y$ is the expenditures in year $y$ [€]
• $prod_y$ is the production in year $y$ [kWh]
• $r$ is the discount rate

In [3]:

# Compute LCOE

annual_expenditures = [
    2700000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
    54000,
]
annual_generations = [
    6385324,
    5644533,
    5565218,
    5664097,
    5993882,
    5599432,
    6500692,
    5643933,
    6950887,
    6233453,
    6684309,
    6241383,
    6865367,
    6919187,
    6276209,
    5547549,
    5715262,
    6606469,
    5828275,
    5847079,
]

lcoe = rk.util.levelized_cost_of_electricity(
    expenditures=annual_expenditures,
    productions=annual_generations,
    discount_rate=0.08,  # Assume 8% interest
)

print(" LCOE is {:.5f} €/kWh".format(lcoe))

# Compute LCOE annual_expenditures = [ 2700000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, 54000, ] annual_generations = [ 6385324, 5644533, 5565218, 5664097, 5993882, 5599432, 6500692, 5643933, 6950887, 6233453, 6684309, 6241383, 6865367, 6919187, 6276209, 5547549, 5715262, 6606469, 5828275, 5847079, ] lcoe = rk.util.levelized_cost_of_electricity( expenditures=annual_expenditures, productions=annual_generations, discount_rate=0.08, # Assume 8% interest ) print(" LCOE is {:.5f} €/kWh".format(lcoe))

 LCOE is 0.04986 €/kWh