Document Type : Research Paper


1 Department of Industrial Engineering, University of Jordan, Amman, Jordan.

2 Department of Mechanical and Industrial Engineering, Applied Science University, Jordan.


Life Cycle Costing (LCC) is a methodology used first time by the Department of Defense of United State, it’s an economic calculation of all costs propagated during the life span of any technical system. For Renewable Energy (RE) systems, LCC is a good methodology, which shows the cost-effectiveness of using RE as an alternative source compared to conventional power generations. A LCC model was introduced for Wind generation system. Data collection was done through four different cost data sources. The results shows that the capital investment cost is $1.968/W. For a 20 years PV project life-time, the operation and maintenance cost forms 19% of the total LCC of the system.


Main Subjects

[1]  Barringer, H. P., Weber, D. P., & Westside, M. H. (1995). Life-cycle cost tutorials. Fourth international conference on process plant reliability, Gulf Publishing Company.
[2]  Fuller, S., & Petersen, S. (1996). Life-cycle costing manual for the federal energy management program, NIST Handbook 135. Handbook (NIST HB)-135.
[3]  Whiteman, A., Rinke, T., Esparrago, J., & Elsayed, S. (2016). Renewable capacity statistics 2016. IRENA3, 29.
[4] Agency, I. E. (2015). Renewable energy medium-term market report 2015. Retrieved from
[5]  Global wind statistics 2015. (2015). Global Wind Energy Council. Retrieved from
[6]   Blanco, M. I. (2009). The economics of wind energy. Renewable and sustainable energy reviews13(6), 1372-1382.
[7]  Renewable energy technologies: cost analysis series. (2012). International Renewable Energy Agency (IRENA). Retrieved from:
[8]  Mulligan, C. J., Bilen, C., Zhou, X., Belcher, W. J., & Dastoor, P. C. (2015). Levelised cost of electricity for organic photovoltaics. Solar energy materials and solar cells133, 26-31.
[9]  El-Shimy, M. (2012, December). Analysis of levelized cost of energy (LCOE) and grid parity for utility-scale photovoltaic generation systems. Proceeding of 15th International Middle East Power Systems Conference (MEPCON’12) (pp. 1-7). DOI: 10.13140/RG.2.2.10311.29603
[10]  Stavy, M. (2002). Computing the levelized cost (B R¢/kWh [US ¢/kWh]) of solar electricity generated at grid connected Photovoltaic (PV) generating plants. Proceeding of world climate & energy event. (pp. 6-11). Rio de Janeiro, Brazil.
[11] Ragnarsson, B. F., Oddsson, G. V., Unnthorsson, R., & Hrafnkelsson, B. (2015). Levelized cost of energy analysis of a wind power generation system at burfell in iceland. Energies8(9), 9464-9485.
[12]  Myhr, A., Bjerkseter, C., Ågotnes, A., & Nygaard, T. A. (2014). Levelised cost of energy for offshore floating wind turbines in a life cycle perspective. Renewable energy66, 714-728.
[13]  Kost, C., Mayer, J. N., Thomsen, J., Hartmann, N., Senkpiel, C., Philipps, S., ... & Schlegl, T. (2013). Levelized cost of electricity renewable energy technologies. Fraunhofer institute for solar energy systems ISE.
[14]  Desideri, U., & Campana, P. E. (2014). Analysis and comparison between a concentrating solar and a photovoltaic power plant. Applied energy113, 422-433.
[15]  Rehman, S., Bader, M. A., & Al-Moallem, S. A. (2007). Cost of solar energy generated using PV panels. Renewable and sustainable energy reviews11(8), 1843-1857.
[16]  Hearps, P., & McConnell, D. (2011). Renewable energy technology cost review. Melbourne energy institute technical paper series.
[17]  Dale, M. (2013). A comparative analysis of energy costs of photovoltaic, solar thermal, and wind electricity generation technologies. Applied sciences3(2), 325-337.
[18]  Branker, K., Pathak, M. J. M., & Pearce, J. M. (2011). A review of solar photovoltaic levelized cost of electricity. Renewable and sustainable energy reviews15(9), 4470-4482.
[19]  Darling, S. B., You, F., Veselka, T., & Velosa, A. (2011). Assumptions and the levelized cost of energy for photovoltaics. Energy & environmental science4(9), 3133-3139.
[20]  Wind technologies market report. (2015). Energy efficiency and renewable energy. Retrieved from
[21]  Hastings, S. & Dronkers, B. (2016). Fact sheet : The true price of wind and solar electricity generation. Pembin institude. Retrieved from
[22]  Bloomberg new energy finance: In search of the miraculous. (2016). Bloomberg new energy finance. Retrieved from
[23]  How2Guide for wind energy - roadmap development and implementation. (2014). International energy agency. Retrieved from
[24]  An overview of the wind power project development process and financial performance of wind energy projects. (2008).  U.S. fish & wilding service. Retrieved from
[25]  Kerres, B., Fischer, K., & Madlener, R. (2015). Economic evaluation of maintenance strategies for   wind turbines: a stochastic analysis. IET renewable power generation9(7), 766-774.