4.7. Other parameters
The lifetime of the project is taken as 20 years and the annual
real interest rate is assumed to be 6%. In the simulation process
these values are applied to each component in order to calculate
the system NPC. In the model, the load following dispatch strategy
has been chosen and the annual capacity shortage is assumed to be
3%. To determine the influence of the capacity shortage on the LCOE
(Levelized Cost of Electricity) and the total NPC, a sensitivity analysis
has been performed assuming the capacity shortage percentage
to be between 0 and 10 (Table 6).