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Life Cycle Cost of Electricity Production: A Comparative Study of Coal-Fired, Biomass, and Wind Power in China

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  • Xueliang Yuan

    (National Engineering Laboratory for Reducing Emissions from Coal Combustion, School of Energy and Power Engineering, Shandong University, Jinan 250061, China)

  • Leping Chen

    (National Engineering Laboratory for Reducing Emissions from Coal Combustion, School of Energy and Power Engineering, Shandong University, Jinan 250061, China)

  • Xuerou Sheng

    (National Engineering Laboratory for Reducing Emissions from Coal Combustion, School of Energy and Power Engineering, Shandong University, Jinan 250061, China)

  • Mengyue Liu

    (National Engineering Laboratory for Reducing Emissions from Coal Combustion, School of Energy and Power Engineering, Shandong University, Jinan 250061, China)

  • Yue Xu

    (National Engineering Laboratory for Reducing Emissions from Coal Combustion, School of Energy and Power Engineering, Shandong University, Jinan 250061, China)

  • Yuzhou Tang

    (National Engineering Laboratory for Reducing Emissions from Coal Combustion, School of Energy and Power Engineering, Shandong University, Jinan 250061, China)

  • Qingsong Wang

    (National Engineering Laboratory for Reducing Emissions from Coal Combustion, School of Energy and Power Engineering, Shandong University, Jinan 250061, China)

  • Qiao Ma

    (National Engineering Laboratory for Reducing Emissions from Coal Combustion, School of Energy and Power Engineering, Shandong University, Jinan 250061, China)

  • Jian Zuo

    (School of Architecture & Built Environment, The University of Adelaide, Adelaide, SA 5005, Australia)

Abstract

Economic cost is decisive for the development of different power generation. Life cycle cost (LCC) is a useful tool in calculating the cost at all life stages of electricity generation. This study improves the levelized cost of electricity (LCOE) model as the LCC calculation methods from three aspects, including considering the quantification of external cost, expanding the compositions of internal cost, and discounting power generation. The improved LCOE model is applied to three representative kinds of power generation, namely, coal-fired, biomass, and wind power in China, in the base year 2015. The external cost is quantified based on the ReCiPe model and an economic value conversion factor system. Results show that the internal cost of coal-fired, biomass, and wind power are 0.049, 0.098, and 0.081 USD/kWh, separately. With the quantification of external cost, the LCCs of the three are 0.275, 0.249, and 0.081 USD/kWh, respectively. Sensitivity analysis is conducted on the discount rate and five cost factors, namely, the capital cost, raw material cost, operational and maintenance cost (O&M cost), other annual costs, and external costs. The results provide a quantitative reference for decision makings of electricity production and consumption.

Suggested Citation

  • Xueliang Yuan & Leping Chen & Xuerou Sheng & Mengyue Liu & Yue Xu & Yuzhou Tang & Qingsong Wang & Qiao Ma & Jian Zuo, 2021. "Life Cycle Cost of Electricity Production: A Comparative Study of Coal-Fired, Biomass, and Wind Power in China," Energies, MDPI, vol. 14(12), pages 1-15, June.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:12:p:3463-:d:573301
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