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Levelized cost of a solar plant, and why financing matters
The prompt
Solmira Power (a fictional company) plans a 100 MW solar plant in a sunny region. Capex is USD 60 million. Capacity factor is 25 percent. Yearly operation and maintenance costs USD 1.2 million. Assume a capital recovery factor of 8 percent per year. What is the levelized cost per MWh? Then recompute it if the capital recovery factor is 11 percent, as it might be in a country where investors demand a higher return.
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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