Calculate the capacity payment

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A power plant has a capacity of 1 MW, a total installed cost of $1 million and a marginal production cost of $75 per MWh. The plant has a capacity factor of 0.15 and faces an average market price of $100 per MWh. Calculate the capacity payment, in $ per MW per day, needed for the plant to recover all of its capital and operational costs. Assume that the plant faces a discount rate of 10% per year and has a lifetime of 15 years.

Please remember to calculate the capacity payment in $ per MW per day. If you find that the energy market revenues will recover all costs, please enter "0" as your response (do not enter a negative number).

Reference no: EM131618743

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