What would be my monthly electric bill if all my electricity were generated by o

Question

What would be my monthly electric bill if all my electricity were generated by offshore wind turbines? Assume: My current electricity bill is $200 ($100 for generation and $ 100 for distribution) My current electricity rate is $0.09/kw-hr -Price of the offshore turbine is $ 11,000,000. Capacity of the offshore turbine is 2 M w -The capacity factor is 45% Assume that the payback period must be 7 years to be in line with a nuclear plant. Assume that the capital cost is the only factor in the price of the electrical generation

Explanation / Answer

Assuming that distribution costs and monthly usage remains constant, you need to find the $/kWh of the turbine so that the capital cost equals electric price at 7 years. You can include leap year, but rounding will not make that necessary.

$/kWh = [total cost of turbine]/[(number of hours in 7 years)*(rated capacity*capacity factor)]

[11,000,000]/[(24*(7*365))*(2000kW*.45) = 0.199 $/kWh

You use $100/.09 kW per month= 1111kWh usage. Distrubution cost should also be per kWh, so that $100 should remain constant.

Your new monthly bill will be 1111kWh*.199$/kWh + $100 distribution = 211.09+100 = 311.09

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