ObjZ Question

[Antti-L]

All annual costs are always reported only for the model periods. Any investment payments falling beyond the model horizon are thus excluded, just like they are (in net terms) excluded also from the objective function (by first including them in the investment cost component and then subtracting the salvage values). The levelized annual cost reporting option makes no exception to that rule. The purpose of the levelized option is to make the reported annualized costs to be consistent average values for each period (as opposed to representing values at the milestone years), such that by discounting them you can even reproduce the objective function. And that is also consistent with the standard definition of levelized costs, where all costs and revenues are taken into account (the salvage value representing a revenue at EOH+1). Including the investment payments falling outside the model horizon in the annual costs reported for periods within the model horizon would in my opinion be inconsistent with the whole idea of annualized costs.

Notwithstanding, it seems that you would expect the full investment costs of a technology with a lifetime of 100 years to be reported in the annual costs, even if only one year of its operation would fall within the model horizon? If so, could you explain why that would be reasonable?

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Hi after reading this thread, I am still wondering if the ObJ reports annual value or the whole economic costs during the period?

Best,
Xiao

[Antti-L]

> Hi after reading this thread, I am still wondering if the ObJ reports annual value or the whole economic costs during the period?

The objective function represents the total cumulative discounted system costs, plus the total cumulative discounted surplus losses, over the full model horizon and over all regions. Its value is reported by the ObjZ reporting parameter (as well as by Reg_obj, and Reg-wobj by region and/or component).