More about LCC
 Economic life cycle assessment is known under several names, such as Life
Cycle Costing, Life Cycle Profit, Full Cost Accounting, Total Cost Assessment (or Accounting). It
is a method of calculating the cost of a system over its entire life span.
LCC = Cic + Cin + Ce + Co + Cm +
Cs + Cenv + Cd
where
Cic: Initial cost: is the purchasing price of the component/system. This can
be paid immediately or in several down payments over the years.
Cin: Installation cost: start up costs that the operator has to pay that are
not included in the purchasing price, e.g. staff training cost, material losses.
Ce: Energy costs: the product of energy use and cost of different types of
energy.
Co: Operating costs: the yearly operating cost, excluding the energy cost.
Cm: Maintenance costs: cost of service and planned repairs.
Cs: Downtime costs: cost of unplanned stops.
Cenv: Environmental costs: e.g. cost of environmental permits.
Cd: Decommission cost: estimated costs to decommission a
product/plant at the end
of its lifetime.
There are also financial factors to take into consideration if you choose to
discount the costs to a certain year. These include:
- Present energy price.
- Expected annual energy price increase (inflation) during the life
time.
- Discount rate.
- Expected equipment life.
When determining the energy costs, the effects of fixed charges, power
charges, penalty charges for reactive power demand etc., must be included if
possible. Corresponding factors must also be considered for energy forms other
than electricity. In addition, the user must decide which costs to include, such
as, maintenance, down time, environmental, disposal, and other important costs. You
can find LCC software in the main menu under
Software.
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