26-06-2025, 07:15 AM
Hi,
Many of our existing industrial coal boilers are being upgraded to work with biomass instead. It is obviously cheaper to upgrade existing technology rather than invest in new biomass boilers, where possible. I would like to allow for this interaction in our model, but I am not sure how to best represent the conversion cost of existing processes.
My current idea is to create two dummy processes to represent the fuel inputs for the existing boilers. One could accept coal, the other biomass, and each would output a dummy commodity that could only fuel the existing boilers. Then I could ensure the dummy coal process capacity matched the existing boilers (with no cost), and the dummy biomass process could be invested in with NCAP_COST, which would represent the conversion cost of existing coal boilers. I would additionally add a third process, which did not take dummy inputs, and simply represents a new biomass/coal boiler, which has a different cost profile but can accept either fuel. I think this works, but it adds mild complexity to the inputs/outputs.
Are there better ways to approach this problem?
Many of our existing industrial coal boilers are being upgraded to work with biomass instead. It is obviously cheaper to upgrade existing technology rather than invest in new biomass boilers, where possible. I would like to allow for this interaction in our model, but I am not sure how to best represent the conversion cost of existing processes.
My current idea is to create two dummy processes to represent the fuel inputs for the existing boilers. One could accept coal, the other biomass, and each would output a dummy commodity that could only fuel the existing boilers. Then I could ensure the dummy coal process capacity matched the existing boilers (with no cost), and the dummy biomass process could be invested in with NCAP_COST, which would represent the conversion cost of existing coal boilers. I would additionally add a third process, which did not take dummy inputs, and simply represents a new biomass/coal boiler, which has a different cost profile but can accept either fuel. I think this works, but it adds mild complexity to the inputs/outputs.
Are there better ways to approach this problem?