L E G A C Y
Citation URL: http://www.osti.gov/geothermal/product.biblio.jsp?osti_id=892027
||Chapter 17. Engineering cost analysis|
Higbee, Charles V.
|Publication Date:||1998 Jan 01|
|OSTI Identifier:||OSTI 892027|
|DOE Contract Number:|
|Research Org:||Geo-Heat Center, Oregon Institute of Technology, Klamath Falls, OR (US)|
|Sponsoring Org:||USDOE - Office of Energy Efficiency and Renewable Energy (EE)|
|Subject:||15 GEOTHERMAL ENERGY|
|Description/Abstract:||In the early 1970s, life cycle costing (LCC) was adopted by the federal government. LCC is a method of evaluating all the costs associated with acquisition, construction and operation of a project. LCC was designed to minimize costs of major projects, not only in consideration of acquisition and construction, but especially to emphasize the reduction of operation and maintenance costs during the project life. Authors of engineering economics texts have been very reluctant and painfully slow to explain and deal with LCC. Many authors devote less than one page to the subject. The reason for this is that LCC has several major drawbacks. The first of these is that costs over the life of the project must be estimated based on some forecast, and forecasts have proven to be highly variable and frequently inaccurate. The second problem with LCC is that some life span must be selected over which to evaluate the project, and many projects, especially renewable energy projects, are expected to have an unlimited life (they are expected to live for ever). The longer the life cycle, the more inaccurate annual costs become because of the inability to forecast accurately.|
|Country of Publication:||US|
|System Entry Date:||2006 Oct 02|
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