Life Cycle Cost of Electricity Production: A Comparative Study of Coal-Fired, Biomass, and Wind Power in China
Xueliang Yuan,
Leping Chen,
Xuerou Sheng,
Mengyue Liu,
Yue Xu,
Yuzhou Tang,
Qingsong Wang,
Qiao Ma,
Jian Zuo
Affiliations
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
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.
