Topic: Air conditioning annual running cost with Demand cost variableSubscribe | Previous | Next
Nnaemeka Emodi 12/13/2017
Greetings.
Please, how can I analyze the air conditioning technology cost with the demand cost variable when I have the annual running cost of the air conditioner per household, but I don't know if to use the Annualized Cost function or to directly input it in the expression.
If I have to use to use the Annualized Cost function, how do I input the expression?
My Regards
Nnaemeka Emodi
Taylor Binnington 12/13/2017
Hi,
Have a look at the AnnualizedCost() help page for its syntax.
The Demand Cost variable in LEAP is interpreted as a value in each year (i.e.cost per year). If you are entering a value that is intended to represent an annual cost instead of a one-time investment cost, then there should be no need to annualize it over many years.
On a side-note, be careful about including fuel costs in your annual operating cost, and then including this in LEAP's demand cost variable. If your model also includes the costs of power generation within its cost boundary, then including a cost for electricity on the demand side would count the cost of power twice.
Hope this helps,
Taylor
Nnaemeka Emodi 12/14/2017
Dear Taylor,
Thank you for your reply. Concerning the demand cost, I have already specified the fixed OM cost and Variable OM cost for electricity generation in the transformation branch.
This will mean that if I go ahead to specify the yearly running cost of a household air conditioner, the LEAP will count the cost of power twice?
Also, can I specify the fueling cost in the transportation sector?
My Regards
Nnaemeka Emodi
Taylor Binnington 12/14/2017
Hi Nnaemeka,
Does your annual running cost for the air conditioner include the cost of electricity? If it does, then yes, you would be double-counting the cost of electricity in your model if you added it into the Demand Cost variable.
Can you clarify what you mean by "fueling cost for transportation"? Do you mean the cost of the fuel? Or the cost of the fueling station infrastructure? Or both? Again, if you include both the cost of fuels consumed using a) the Demand Cost variable and also b) inside a cost variable within the Resources branches (or if you include costs within the transformation module which produces the transportation fuel), then you are effectively including the same information twice in the model, and LEAP's cost-benefit accounting will double-count these costs.
I think that rather than trying to answer these cost questions on a case-by-case basis, it would be most helpful for you to thoroughly review some of the help files on cost-benefit accounting in LEAP. I'd recommend starting here:
https://www.energycommunity.org/Help/Concepts/Transformation_Cost_Calculations.htm
https://www.energycommunity.org/Help/Concepts/Social_Cost-Benefit_Analysis.htm
https://www.energycommunity.org/Help/Resources/Resource_Costs.htm
https://www.energycommunity.org/Help/Results_Categories/Costs.htm
In particular, you should consider where in your model it is appropriate to set your cost-benefit "boundary", which is briefly described here.
Hope this is useful,
Taylor