Sunken Costs of Trade Processes

[mresende]

Hi,
 In my model, there is a scenario file ScenTrade_Transmission for definition of the trade processes' parameters. In this file, I have defined the parameter STOCK, for installed capacity in the base year, and the parameter INVCOST, such that it is possible for TIMES to expand the existing capacity incurring an investment cost for doing this. My problem is that TIMES is multiplying this existing capacity (STOCK) by the investment cost (INVCOST) and associating a cost with an already existing capacity. This does not change the optimal solution of TIMES, since it is a sunken cost (a constant that is simply added to the objective function). However, I would like TIMES not to consider this sunken cost in the objective function. Is there some way to do this?

Thank you!

[Antti-L]

Yes.  INVCOST (=NCAP_COST) is a vintaged parameter.  So you can define it zero for the existing vintage:

INVCOST(Baseyear)=0        (investment cost is zero in the Base year and before)
INVCOST(Baseyear+1)=X      (X is your original investment cost value)
NCAP_BND(Baseyear,UP)=0    (to prevent investments in the Base year)
NCAP_ILED(Baseyear+1)=0    (if you did not have NCAP_ILED defined for it before)

where Baseyear is the Base year in your model.

Additionally, activate OBLONG in the VEDA control panel.

[mresende]

Thank you! That solved my problem!