Greetings,

From LEAP Help section (http://www.energycommunity.org/WebHelpPro/Results_Categories/Investment_Costs.htm), we know the definition of Investment costs "shows the total non annualized investment costs in each Transformation process in any particular year. For any given process and year, the investment cost is the product of the capacity added in that year and the unit capital cost."

Or I could say that

Investment Cost(year)∶Capacity Added(year) (MW) × unit capital cost ($/MW)

My question is, can we take the calculation of investment costs (throughout all year) to certain year as NPV (Net Present Value)? Because I need to know how much is NPV for Investment Costs only at certain year.

Tri Ilham

Yes, you can view this result. To do so, Select Costs: Investment Costs to show the non-annualized investment requirements. Then above the chart, select "More", and choose "Discounted Costs" from the dropdown menu. This will show you future investment costs discounted to the area's Monetary Year, which is set under Basic Params.

Note that the net present value (NPV) is defined as the sum of all future costs (or benefits) relative to a common baseline. So to calculate the NPV of one scenario relative to another, you would also need to select "Differences vs: (a scenario of your choice)", and ensure that you choose "Cumualtive Values" rather than "Absolute Values". Each of these options is also revealved above the chart by selecting the "More' option.

Hope this helps,

Taylor

In my model, for electricity generation processes, I have input capital cost, fixed O&M and variable O&M data for each process. I have also checked the "costs" box in basic parameters for Complete Energy System. I have also set the discount rate. I have the following queries:

1. What is the difference between investment cost and cost of production?

2. In my results for costs, I have values for cost of production for different generation process and when I click on "All Module Cost Categories" I find capital cost, fixed and variable O&M cost. But when I click on investment costs in results, I do not get any values. Why is this?

Appreciate your assistance.

Regards

Ravita

The Cost of Production contains all annual module costs reported as positive values, except for sales revenue, Among these many costs, the annualized capital cost is shown.

The Investment Cost reports non-annualized capital costs in the year in which they are incurred. Since this shows only one type of cost (capital), you cannot view it by module cost category as you can with the Cost of Production result.

Hope this helps,

Taylor

Appreciate your assistance.

Regards

Ravita

That's correct - you may omit Capital Costs for plants which already exist, if you like. LEAP will only count capital costs (and only for a number of years equal to the plant's lifetime) for capacity which is added during the model's time horizon. This could be during the Current Accounts period or during your scenarios. So, if a plant's capacity does not increase after your model's base year, it will contribute no capital cost and you may leave that variable blank.

Taylor