Topic: The math behind the cost of productionSubscribe | Previous | Next
Hyungsik Choi 3/5/2023
Hi,
I always have wondered about the exact meaning of the cost of production in the results views.
I understand it consists of multiple cost terms such as capital costs, fixed O&M, and variable O&M costs.
The vague area is how capital costs are annualized in the annual cost terms. I guess that capital recovery factor is used for the capital.
I also guess that the annualized capital costs are accumulated according to cumulative capacity.
The other is whether the cost values shown in the results are discounted or not.
Please, clarify these issues. Thanks in advance.
Best,
Hyungsik
<all cost>
<Capital costs>
Marcel MOBIO 5/14/2024
Hello Hyungsik Choi !
I wondered the same questions about how production energy matches demand energy?
Which maths behind?
Thks in advance.
Charlie Heaps 8/16/2024
Hi both - There is a lot of documentation in the User Guide/Help Files including descriptions of how capital costs are annualized based on entered lifetimes and interest rates. Please post again if that information is not sufficient.