LCOE for AWES

LCOE for AWES
Levelized energy cost (LEC, also called Levelized Cost Of Energy or LCOE) is a cost of generating energy (usually electricity) for a particular ...

AirborneWindEnergy/message/9478

Parameters: This list is not complete (essays are invited; notes too)

R&D
Overhead
System purchase
Repair
Transportation
De-commissioning
Insurance
Liability and hull insurance
Superior maintenance
Frequent inspections
Safety redundancy
Associated regulatory costs
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Study links:

www.en.wikipedia.org/wiki/LCOE

The common flaw in all the "LCOE < ~.02USD per kWhr" claims
Posted By: santos137 Sat Jun 29, 2013 8:59 am

Its the most consistent and incredible economic claim in the AWE "industry", that kite energy can be dirt cheap; even as little as .01USD per kWhr. Seldom, if ever, are detailed calculations offered, and most of the claims are the resound of the AWE hype echo-chamber. Just where is the error in these numbers?

I have re-reviewed some of these claims and found a major common omission. Without naming names, since the error is pervasive and innocent, the common omission is to not properly account for "fixed" aviation regulatory and safety costs. Up to about 90% of aviation costs (excluding fuel) are the cost of liability and hull insurance, superior maintenance, frequent inspections, safety redundancy, and all the associated regulatory costs. Offshore operations are not an escape, since the hostile environment negates regulatory savings.

Therefore, the obsolete AWE LCOE estimates need to be multiplied by ten or so. Adjusted LCOE estimates then range from around .10-.20 USD per kWhr, as a far more realistic projection. This is still quite attractive, given the many unique advantages upper-wind can offer.

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