The correct answer is:
$0.07 per kWh
To calculate the levelized cost of energy (LCOE), we can use the formula:
LCOE = (total capital costs + total operating costs) / total production
First, calculate the total capital costs over the lifetime of the project:
Total capital costs = $995,000
Next, calculate the total operating costs over the lifetime of the project:
Total operating costs = $175,000 * 25 years = $4,375,000
Now, calculate the levelized cost of energy:
LCOE = ($995,000 + $4,375,000) / 89,500,000 kWh = $5,370,000 / 89,500,000 kWh = $0.07 per kWh
Therefore, the levelized cost of energy is $0.07 per kWh.