LCOE with 100% debt

  • Paul Gilman
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08 May 2014 11:21 #2314 by Paul Gilman
LCOE with 100% debt was created by Paul Gilman

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  • teddavidovich
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08 May 2014 12:05 #2315 by teddavidovich
Replied by teddavidovich on topic LCOE with 100% debt
It alwasy has bothered me that by solving for LCOE you get a negative NPV. Is it better to back solve the PPA price to get an NPV of zero?

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  • Paul Gilman
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08 May 2014 16:57 #2316 by Paul Gilman
Replied by Paul Gilman on topic LCOE with 100% debt
A negative NPV indicates that at the real discount rate you specified, given the project costs and other assumptions you made, the project costs are higher than its returns. Please see the note in the Financial Metrics Overview topic in Help: Best regards,

Paul.

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