Method for design life of energy system components based on Levelized Cost of Energy

Abstract Constructing renewable energy systems consumes materials and energy. The process is counterproductive to the sustainability of these systems. A design technique based on a circular economy could alleviate this problem. One such approach involves system design with upgradeable components that promote longer life. This paper presents a method to define the timing of component upgrades based on optimal component life. This method considers the Levelized Cost of Energy (LCOE), which is crucial to the deployment of renewable energy. An optimization problem is devised to find the component design life that minimizes the LCOE. Three parameters are considered in this formulation; the marginal cost of the design life, opportunity cost of technology evolution, and cost adjustment for time. An algorithm is presented to create constraints based on the interaction among system components. Evolutionary optimization is used to find the optimal component life. A sensitivity analysis is conducted to identify the most influential design parameters. The proposed method is demonstrated using a design 1.5 MW wind turbine as an example. Fifteen component life arrangements were considered for six different system-life scenarios. The system life scenarios varied from 25 to 100 years. The results suggest the design life of system components is highly dependent upon the evolution of technology and adjustments in the cost over time. The study indicated that a sustainable wind turbine design could be implemented with a life of 100 years, with a 2% increase in the LCOE.