Problem with Vintages

[rmpattupara]

Hi,

I am trying to couple a CGE model, with a TIMES electricity model. For this, I want to modify some of my cost numbers by using a multiplier. The numbers I want to change are the Investment costs (NCAP_COST), the fixed OM (NCAP_FOM) and the variable OM (ACT_COST). I am able to modify the variable OM costs, but the method does not work on the investment cost and fixed operating costs. Is this due to the vintages? Do vintages only apply on Investment costs and Fixed OM and not on Variable costs?

Thank you for your help

[Antti-L]

Yes, Investment costs, Fixed OM, plus decommissioning costs are vintage-specific. Variable costs are not.

But from what you describe, I don't understand the problem with "modifying" the investment and fixed costs...

[rmpattupara]

Hi Antti,

Thanks for the reply. The code that we use to modify the costs is as follows...

PARAMETER

VAROM_COEF_GENESIS(Energy_Carriers,ALLYEAR)

OBJ_ACOST("CH",ALLYEAR,COUPLED_PRC, CUR)$sum(Energy_Carriers$PRC_to_Energy_Carriers(COUPLED_PRC, Energy_Carriers),

VAROM_COEF_GENESIS(Energy_Carriers,ALLYEAR)

)

=

OBJ_ACOST("CH",ALLYEAR,COUPLED_PRC,CUR) *

sum(Energy_Carriers$PRC_to_Energy_Carriers(COUPLED_PRC, Energy_Carriers),

VAROM_COEF_GENESIS(Energy_Carriers,ALLYEAR)

)

;

where Energy_Carriers is the multiplier (that we get from another file), and PRC_to_Energy_Carriers is the function where we multiply our process with the cost multiplier. Applying this method works with Var OM, whereas the appropriate code does not work for Investment costs or Fixed OM costs.

[Antti-L]

Oh, you are doing it in GAMS.  I hope you are not modifying the TIMES code files, but use the extension facility?  Which version of TIMES and GAMS are you using? 

Anyway, as you don't explain in what sense "the appropriate code does not work for Investment costs or Fixed OM costs", it is difficult to comment much about it.  Surely, OBJ_ICOST and OBJ_FOM could be multiplied in the same way as OBJ_ACOST, and so what is the problem?

[Kannan]

Antti

Thanks for the clarification. Certainly TIMES codes are not modified.

Just add some more explanation to Rajesh’s question above, we have used vintage in our model and declared cost and technical parameters.
Since the model is being coupled to a CGE model, the CGE model pass back change in VOM and FOM costs (due to change in labor market and some material costs).
As you mentioned, since the FOM cost is vintage specific, we are unable to update the FOM cost of a technology, for which investment decisions are already made. In other words, we are trying to update FOM cost of a 2020 technology in year 2030 or later period.

Like the VOM cost, is there any way to exclude the FOM cost from vintage?

Or should we have to remove the vintage and try?
We seek your advice
Thanks

[Antti-L]

If by "using vintage" you mean that you define processes to be genuinely vintaged (PRC_VINT), that would be irrelevant to your problem. As I said in my earlier post, NCAP_COST and NCAP_FOM are vintage-specific, and they are so regardless of the process being vintaged or not.

In TIMES, one can model labor cost changes by multiplying  NCAP_FOM with a MULTI index. You can specify the MULTI index to be applied for each process by using the NCAP_FOMM parameter.

For investment costs, I would say there is hardly any sensible way of updating the annualized investment payments of a  2020 installed technology in later years.

[Kannan]

Antti
thanks a lot. I was unaware of the NCAP_FOMM parameter
then, I am hoping, the multi index would solve our problem!
Of course we are not changing the annuity of an installed technology.