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(12-05-2025, 02:08 PM)Antti-L Wrote: It must be because in your case that cost does not affect the price of gas. If it would affect the price of gas, the Levelized Energy Cost (LEC) calculated for any process using GAS would accordingly be changed.
Why the price of GAS is not affected in your model by the cost of MINGAS, I don't know as I cannot see what is going on in your model, but one possible reason is hitting the ACT_BND bound, which would prevent that cost affecting the price.
Hi Antti,
You're right, the LCOE of GASPP changes when I change "ACT_BND". But I can't understand how is ACT_BND (which only sets the limit of an activity) affecting the LCOE. Isn't COST directly related to LCOE rather than ACT_BND?
For example, if I have hit the ACT_BND limit (let's say 100) and begin to increase the COST, shouldn't this affect the total cost of the process (although for the same amount of activity, that is 100)?
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12-05-2025, 02:33 PM
(This post was last modified: 12-05-2025, 02:54 PM by Antti-L.)
> if I have hit the ACT_BND limit (let's say 100) and begin to increase the COST, shouldn't this affect the total cost of the process (although for the same amount of activity, that is 100)?
Sure, the LEC of the MINGAS process would be affected. But levelized cost is cost measure for individual technologies, and therefore for the processes
using GAS, the price of GAS is not taken from any upstream levelized cost, but from the
equilibrium price of GAS (as endogenously calculated by the model).
See:
http://iea-etsap.org/docs/TIMES-Levelized-Cost.pdf
The equilibrium prices (commodity balance marginals) are derived by the solver, according to standard methodology.
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(12-05-2025, 02:08 PM)Antti-L Wrote: It must be because in your case that cost does not affect the price of gas. If it would affect the price of gas, the Levelized Energy Cost (LEC) calculated for any process using GAS would accordingly be changed.
Why the price of GAS is not affected in your model by the cost of MINGAS, I don't know as I cannot see what is going on in your model, but one possible reason is hitting the ACT_BND bound, which would prevent that cost affecting the price.
Thanks Antti! It is all clear now!
