Florida Power and Light has committed to build-ing a solar

Chapter , Problem 5-106

(choose chapter or problem)

Florida Power and Light has committed to build-ing a solar power plant. JoAnne,an IE working forFPL, has been tasked with evaluating the three cur-rent designs. FPL uses an interest rate of 10% anda 20-year horizon.Design 1: Flat Solar PanelsA field of flat solar panels angled to bestcatch the sun will yield 2.6 MW of power andwill cost $87 million initially with first-year oper-ating costs at $2 million, growing$250,000 annu-ally. It will produce electricity worth $6.9 millionthe first year and will increase by 8% each yearthereafter.Design 2: Mechanized Solar PanelsA field of mechanized solar panels rotatesfrom side to side so that they are alwayspositionedparallel to the suns rays, maximizing the produc-tion of electricity. This design will yield 3.1 MWof power and will cost $101 million initially withfirst-year operating costs at $2.3 million, grow-ing $300,000 annually. It will produce electricityworth $8.8 million the first year and will increase8% each year thereafter.Design 3: Solar Collector FieldThis design uses a field of mirrors to focusthe suns raysonto a boiler mountedin a tower. Theboiler then produces steam and generates electric-ity the same way a coal-fired plant operates. This system will yield 3.3 MW of power and will cost$91 million initially with first-year operating costsat $3 million, growing$350,000 annually. It willproduceelectricity worth $9.7 million the first yearand will increase 8% each year thereafter.