Costs from the original data source are displayed for each technology and it is shown how these costs are adjusted to be consistent with the nominal reference system characteristics such as plant capacity and overall efficiency. Where the original data present estimated costs in other than 1978 dollars, these are normalized to 1978 dollars by application of appropriate escalation factors. The development presented in this section results in baseline point estimates based on the assumption that each technology is constructed to come on line in 1978 and is financed totally in 1978 dollars. This is the starting point for the analysis presented in the cost and performance comparison, where these 1978 point estimates are adjusted to reflect systems coming on line in the year 2000. These costs are analyzed in the cost and performance comparison in terms of their potential uncertainties in the 2000 time frame by assigning an upper range to the year-2000 base costs. Subsequent analysis is then based on these cost ranges. As previously mentioned, construction costs for each of the nominal reference systems were developed on a consistent basis by adjusting published data to a common set of rules and assumptions. Thus, all costs make similar assumptions about the owner's costs, contingencies, and allowances for funds used during construction. The primary source of data for the coal and nuclear systems was the Energy Economic Data Base (EEDB)22 compiled and updated for DOE by United Engineers and Constructors. The General Electric study for EPRI® and the SPS concept definition studies^’?’® were used for cost data on the terrestrial photovoltaic system and the SPS, respectively. In several cases the available cost estimates were for plant sizes and heat rates (efficiencies) different from those selected for the reference technologies. These were adjusted by power factors commonly used in electric utility cost estimation. A construction cost that excludes contingencies, owner's costs, and interest during construction was thus derived. Where costs were in a different year's dollars, they were adjusted to 1978 dollars by an appropriate escalation rate; SPS cost estimates^’® given in 1977 dollars were escalated to 1978 dollars using an 8.0% escalation factor. 3.3.1 Satellite Power System Development Costs. Boeing^5 estimated development costs on the basis of the reference system scenario, which predicates a 20-year development schedule and a 30-year deployment schedule (for 60 5-GW satellites). These costs amount to $100-110 billion and are broken down as follows (Fig. 3.15): • Research costs: mainly ground-based research to address environmental and social issues and alternative systems, resulting in a preferred system; • Engineering: development and testing of prototype subsystems, resulting in specifications for demonstration units and production facilities; • Demonstration: flight tests of a 100-200 MW unit integrated with a commercial network;
RkJQdWJsaXNoZXIy MTU5NjU0Mg==