Let me see how my estimate for the LCOE compares with the auction price.
- there is no inflation,
- taxation implications are neglected,
- projects are funded entirely by debt,
- all projects have the same interest rate (8%) and payback period (25 years), which means that the required rate of capital return is 9.4%,
- all projects have the same annual maintenance and operating costs (2% of the total project cost), and
- government subsidies are neglected.