Generator Build Cost

Units:$/kW
Mode:Input/Output
Multi-band:True
Default Value:0
Validation Rule:Any Value
Key Property:No
Description:Cost of building a unit
Input

Generator Build Cost is the 'overnight cost' of building a unit in LT Plan.

The Build Cost is treated as a 'lump sum' incurred when the unit is built, or an annuity if Economic Life and WACC (or Levelized Capital Carrying Rate) are defined. Build Cost is defined per kilowatt of capacity so the total cost of building one unit is:

Cost ($) = ∑ Build Costb ($/kW) × Max Capacity (MW) × 1000 (kW/MW)

Note that, the cost is also treated as a lump sum, if the Economic Life is entirely inside the planning horizon and the value of WACC is not the same as the Discount Rate.

Table 1: Build Cost Example
Property Value Units
Units 0 -
Max Capacity 500 MW
FO&M Charge 50 $/kW/year
Max Units Built 1 -
Build Cost 1500 $/kW
Economic Life 25 years
WACC 10 %


For the example in Table 1, note how the property Max Units Built is used to define the number of units that can be built.

Build Cost is a multi-band property allowing you to model a stream of payments leading up to the commission date.

Table 2: Staged Build Cost Example
Property Value Units Band
Build Cost 300 $/kW 1
Build Cost 300 $/kW 2
Build Cost 900 $/kW 3


For the example in Table 2 a series of payments in three years leads up to the commission date implying that the project needs three years to be built.

See also:
Output

Generator Build Cost as an output is the total cost of new builds and is calculated as:

Build Cost = Units Built × Build Cost (as calculated above from the input)

Notice that the reported Build Cost is the 'overnight cost' considering the input Build Cost in all bands. The output property Annualized Build Cost reports the build cost as an annuity.

See also: