Total life cycle cost model for electric power stations

Conference · Sun Dec 31 04:00:00 EST 1995

OSTI ID:163302

Cardullo, M W ^[1]

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1. Virginia Polytechnic Inst. and State Univ., Falls Church, VA (United States)

The Total Life Cycle Cost (TLCC) model for electric power stations was developed to provide a technology screening model. The TLCC analysis involves normalizing cost estimates with respect to performance standards and financial assumptions and preparing a profile of all costs over the service life of the power station. These costs when levelized present a value in terms of a utility electricity rate. Comparison of cost and the pricing of the electricity for a utility shows if a valid project exists. Cost components include both internal and external costs. Internal costs are direct costs associated with the purchase, and operation of the power station and include initial capital costs, operating and maintenance costs. External costs result from societal and/or environmental impacts that are external to the marketplace and can include air quality impacts due to emissions, infrastructure costs, and other impacts. The cost stream is summed (current dollars) or discounted (constant dollars) to some base year to yield a overall TLCC of each power station technology on a common basis. While minimizing life cycle cost is an important consideration, it may not always be a preferred method for some utilities who may prefer minimizing capital costs. Such consideration does not always result in technology penetration in a marketplace such as the utility sector. Under various regulatory climates, the utility is likely to heavily weigh initial capital costs while giving limited consideration to other costs such as societal costs. Policy makers considering external costs, such as those resulting from environmental impacts, may reach significantly different conclusions about which technologies are most advantageous to society. The TLCC analysis model for power stations was developed to facilitate consideration of all perspectives.

• DOE Contract Number: AC01-92FE62174
• OSTI ID: 163302
• Report Number(s): CONF-950729--
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
29 ENERGY PLANNING, POLICY, AND ECONOMY
AIR POLLUTION CONTROL
ATMOSPHERIC PRESSURE
BY-PRODUCTS
CAPITALIZED COST
COAL
COAL GASIFICATION
COAL TAR
COMBINED-CYCLE POWER PLANTS
COMPUTERIZED SIMULATION
DESULFURIZATION
ENVIRONMENTAL IMPACTS
FERTILIZERS
FLUE GAS
FLUIDIZED BED BOILERS
FOSSIL-FUEL POWER PLANTS
LIFE-CYCLE COST
MATHEMATICAL MODELS
METHANOL
METHANOL PLANTS
NATURAL GAS
OPERATING COST
PERFORMANCE
PRESSURIZATION
PULVERIZED FUELS
SULFUR
SULFURIC ACID