Page 318 - Fluid Power Engineering

284 Chapter Thirteen

Balance Sheet Line Items Values for Year i
Current assets
B1 Cash in bank Year-end cash position
BA Total current assets B1
Fixed assets
FA1 Machinery and equipment Total installed cost of the project
FA2 Less accumulated depreciation Sum of depreciation claimed up
to current year
FAA Total fixed assets FA1 – FA2
Total assets FAA + B1
Liabilities and equity
L1 Current liabilities Short-term debt
L2 Long-term debt Long-term debt
LA Total liabilities L1 + L2
Owner’s equity
C1 Invested capital Equity investment in project
C2 Retained earnings From income statement
CA Total owner’s equity C1 + C2
Total liabilities + owner’s equity LA + CA

TABLE 13-4 Structure of a Balance Sheet for a Typical Wind Project

Levelized Cost of Energy (LCOE)
LCOE is a measure of the cost of energy produced by a wind farm in
terms of dollars per kilowatts-hour. LCOE is an industry standard in
the electricity generation for computing the lifecycle cost of electrical
energy. It takes into account the following:

Total installed cost (TIC)

Annualrecurringcostsofoperations,maintenance,andothers

Annual energy production for the life time of the project

Cost of money

Levelized cost of energy, pr , is the value of energy that yields
LCOE
zero NPV, that is:

i

NPV = 0 = L pr en (i) − rc (i) /(1 + r) − TIC (13-1)
LCOE
i=1