Estimating the Impact of Residual Value for Electricity Generation Plants on Capital Recovery, Levelized Cost of Energy, and Cost to Consumers
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- U.S. Dept. of Energy (DOE), Washington, D.C. (United States)
There is often a benefit to continue operating electricity generating assets after their initial contracts expire. This report discusses these benefits and associated risks, using data and illustrative calculations. The key findings are: the realized operational lives of generation technologies before retirement are typically much longer than typical measures of economic lives. The cost impact of a life extension can be comparable to the impact of other factors considered for generation investment decisions, and suggests that R&D and commercial efforts to extend generator life may be valuable. Refurbishment has a useful and economic role, but the option is often neglected during initial investment. Estimating follow-on value at the time of the original investment is complex and often neglected, but may be valuable.
- Research Organization:
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Sponsoring Organization:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE), Strategic Priorities and Impact Analysis Office (EE-61)
- DOE Contract Number:
- AC36-08GO28308
- OSTI ID:
- 1493401
- Report Number(s):
- NREL/TP-6A20-72217
- Country of Publication:
- United States
- Language:
- English
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