Pastoral candidate Southeastern Synod ELCA | Lutheran Theological Southern Seminary | PhD statistician leaving behind career in finance
Oct 30, 2019 • 38 tweets • 7 min read
1/ Here is a simple model for understanding how power price volatility impacts LCOE and value of electrolyzers.
LCOE = P.mean + (C.fix - P.std f(z))/F(z)
2/ P is price of power MWh, assumed normal.
C.fix is fixed costs MW capacity allocated per hour.
F and f are the standard normal cdf and pdf.
Z = (P - P.mean)/P.std
F(z) is also the capacity factor operating whenever X <= x.
