Break point (MWh) calculation

[Hameedulla-Ekhlas]

Dear all,

I was just reading one topic and faced one problem and can anybody guess the hilighted 155 where comes from in the below equation


The break-even point can be calculated as follows:
Break-even (MWh) = Fixed Costs/(Selling Price
−
(Variable Cost/Unit)
= $4,570,000/($30.00 ? $19.80)
= 448,040 MWh

Assuming a reliability of 95%, 1,289,910 MWh are available during the year

(24 ? 365 ? 0.95 ? 155).

Therefore, the break-even utilization is 448,040 MWh/1,289,910 MWh,
or 34.7%, which is 53.8 MW of capacity that needs to be tied down on longterm
contract.

 

[jghrist]

155 must be the capacity in MW of the generating plant that is being evaluated. If a 155 MW plant ran 365 days a year, the energy output would be 365?24?155 = 1,357,800 MWh. If it only available 95% of the time, then 95% of this is available (1,289,910 MWh).

 

[Hameedulla-Ekhlas]

155 must be the capacity in MW of the generating plant that is being evaluated. If a 155 MW plant ran 365 days a year, the energy output would be 365?24?155 = 1,357,800 MWh. If it only available 95% of the time, then 95% of this is available (1,289,910 MWh).

exactly and thank you.