Capacity Price Base Column
Column Type = Text
Populating this optional column in conjunction with the Capacity Pricing Function column will activate dynamic capacity pricing logic when used in a long-term simulation with the MIP Maximize valueChronological method being used. The purpose of the logic is to have expected capacity prices be a direct driver of new build decisions and the final reserve margins as opposed to a post processing calculation. The Capacity Price Base value can be specified on the zone or pool level, and is defined in currency/MW-wk. If both are specified, then the pool level inputs will be used and all zones will get the same final capacity price. Note that if it is not specified on a pool level, all zones within the pool must have both the Capacity Pricing Function and Capacity Price Base inputs populated in order for the logic to be activated for any of the zones in the pool.
When the logic is activated for a given zone or pool, the capacity price will be calculated based on the final reserve margin from which the appropriate factor will be retrieved from the capacity pricing function. This is multiplied by the Capacity Price Base value to get the final capacity price for a given year. As the model makes its decisions it recognizes that as the reserve margin changes the capacity revenue for new and existing generators also changes, and it seeks to builds as many of the most profitable new resources to meet all constraints while recognizing both energy and capacity revenue.
NOTE: Inputs can be specified as an annual vector via a reference to an ID in the Time Series Annual table. For information on how to specify a times series for a variable, see Entering a Time Series.
Capacity Price Base Column