Nominal or Real LCOE

Dear Paul;

Thank you for very useful replies. However, I have some questions?

1- Which prefer to use Nominal or Real LCOE in biomass model. the analysis period 20 years?. However the inflation rate in Egypt is 8%

2- How SAM computes Gross annual energy in biomass model?

3- I have created Biomass model for different amounts of rice straw which are (93000 ton/year, 651 ton/year, 527 ton/year, 465 ton/year, 279 ton/year). The LCOE of 93000 ton/year is 8.72 (¢/kWh) for the four other amounts is 8.82 (¢/kWh) and is the same. I would like to know why the LCOE of 93000 ton/year is different from the four other?.

Thanks in advance
Suzan

Dear Suzan,

1. The form of the LCOE depends on your analysis. If you are comparing SAM's LCOE to a value calculated elsewhere, you should be sure to use the same form of the LCOE to make your comparison meaningful.

2. The gross output and annual output appear to be the same metric, and represent the electrical output of the plant. I need to investigate the difference further.

3. The different feedstocks have different energy content and different costs (specified on the Feedstock costs page). Feedstocks that are richer in energy content will result in more electricity being generated for the same mass of feedstock, and therefore contribute to lowering the LCOE. Feedstocks that have a lower cost (and similar energy content) will result in a lower LCOE.

Best regards,
Paul.