Year Column
Unit = $/MW-week
The Year column displays the capacity price for the given area in that year.
The capacity price is determined by calculating the incremental revenue requirement (above that earned from energy prices alone) of the marginal resource in order to enable that resource to meet its return requirement (real, levelized NPV >=0). In this case, the marginal resource is defined as the resource necessary to meet the peak demand plus planning reserve requirement.
By default, the capacity price is calculated at a zonal level, but reported at an area level in the capacity price table (i.e. all areas consolidated into a zone will have the same capacity price applied). If using Operating Pools, the capacity price will apply in a zone only if the marginal resource for the pool resides in that zone. To extend that capacity price to all zones that belong to the operating pool, use the optional Extend pool credits switch, found on the Long Term Simulation Options form.
The units for capacity prices are $/MW-week, the same as the values for Fixed Operating and Maintenance (FO&M) in the Resources table, however the values for capacity prices are nominal.
Year Column