I got this in my Inbox:
Kinsella’s price calculation of 24.6 cents/kWh is hilarious! He can’t be serious about just adding the two numbers.
To calculate the combined per kWh cost of the 130 MW project one has to calculate the weighted cost of each component:
Output from the first 90 MW at an agreed starting price of 16 c/kWh with another 40 MW at 8.6c/kWh results in a price of:
(90 MW x $0.16 + 40 MW x $0.086)/(90 MW + 40 MW) = $0.137231 or about 13.7 cents per kWh in the first year.
Simple arithmetic. And LIPA’s Levelized Cost of Energy (LCOE) calculation over 20 years on page 3 of their fact sheet confirms the combined price in the footnote as 14.1 cents/kWh: