A proposed tidal barrage cost will cost $30M. It has a generating capacity of 6

Question

A proposed tidal barrage cost will cost $30M. It has a generating capacity of 6 MW and efficiency of 90%. The plant can operate on the outgoing tide for 3 hours each tidal period. Assuming a 20 year lifetime calculate the: 1. The simple return on investment (given an electricity generation price of 7.5c/kWh) 2. The simple annual unit cost of electricity production in ($/kWh) Your contract changes to the following: An electricity retailer offers the following prices for your electricity (6 hour period from 10pm-6am): 3c/kWh (18 hour period 7am-9pm): 9 c/kWh Can you exploit this to make a better return? Justify your answer.

Explanation / Answer

Total generating power capacity

Of tidal barrage = 6*10^6*(0.9)=5.4*10^6 watts =5.4Mw

Per day the production for two tidal periods is

(2 * 3)*6 Mwh=36 Mwh

For 20 years the power generated = 36*365*20 Mwh

For 1kwh bill is 7.5 cents

For 36*365*20*10^3*7.5 =19.71M$

2. For half the time rate is 3 cent/kwh

And remaining half time@ 9cent/kwh

Total price for 20 years = 36*365*10*(10^3)*3 + 36*365*10*(10^3)*9=15.7M$

According to me the proposed barrage cost is 30M$

So per unit cost will be around (30*10^6)/(5.4*10^3*20*6*365)=12.7cents/kwh

So none of the above electricity generation price can

give good return and the second rates are not better to prior

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