Given that LCOE was originally designed as a breakeven model, it has limited application to situations where the project owner is interested in revenue (profit) generation or in installations where the electricity produced is displacing some or all of the high cost tier grid supply. For these applications, a new model has been developed called Total Cost of Ownership for Energy™ (TCOe™). TCOe™ includes additional factors such as revenue/displacement and cost factors applicable to both rooftop and utility scale applications.
By its nature, LCOE is limited in the breadth of questions it can answer and boils down to simply “which energy producing project will generate the lowest kilowatt-hour cost in today’s dollars?” TCOe™ attempts to remove some of the limitations of LCOE with regard to revenue generation, the value of grid power displaced, and the value of power density when faced with space constraints inherent in rooftop installations.
To support the broader acceptance of TCOe™ and to foster a discussion of future improvements, WWK has created the LinkedIn group “TCOe - Total Cost of Ownership for Energy” which can be found at http://www.linkedin.com/
With more than 3,000 users worldwide, Wright Williams & Kelly, Inc. is the largest privately held operational cost management software and consulting company serving technology-dependent and technology-driven organizations. WWK maintains long-term relationships with prominent industry resources including SEMATECH, National Institute of Advanced Industrial Science and Technology (AIST), Semiconductor Equipment and Materials International (SEMI), and national labs and universities. Its client base includes nearly all of the top 20 semiconductor manufacturers and equipment and materials suppliers as well as leaders in nanotechnology, micro electro-mechanical systems (MEMS), thin film record heads, magnetic media, flat panel displays (FPD), solid state lighting/light emitting diodes (SSL/LED), and photovoltaics (PV).
WWK’s product line includes TWO COOL® for detailed process step level cost of ownership (COO) and overall equipment efficiency (OEE), PRO COOL® for process flow and test cell costing, Factory Commander® for full factory capacity analysis and activity based costing, Factory Explorer® for cycle time reduction and WIP planning, and TCOe™ for energy production project costs (cost/kilowatt-
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WWK provides software and consulting services to assist our clients in making better business decisions. The focus of our efforts is to assist our clients in improving the productivity of their manufacturing operations and reducing their per-unit costs.