Competition No Load Cost Mark-up
| Units: | Yes/No |
| Default Value: | False (0) |
| Validation Rule: | False (0) or True (-1) |
| Description: | If marginal cost bid should be adjusted to account for no-load cost |
| Detail: |
Competition No-load Cost Mark-up is a flag that indicates if generator mark-ups should be automatically set such that no-load cost is recovered.
Example
Consider a Generator with the following capacity and heat rate properties:
| Property | Value | Data File | Units | Band |
|---|---|---|---|---|
| Max Capacity | 400 | MW | 1 | |
| Min Stable Level | 100 | MW | 1 | |
| Load Point | 100 | MW | 1 | |
| Load Point | 350 | MW | 2 | |
| Load Point | 400 | MW | 3 | |
| Heat Rate Base | 150 | GJ/hr | 1 | |
| Heat Rate Incr | 9 | GJ/MWh | 1 | |
| Heat Rate Incr | 9 | GJ/MWh | 2 | |
| Heat Rate Incr | 14 | GJ/MWh | 3 |
Assuming a Fuel Cost of 2.0 then we have the following:
| Generation (MW) | Band Quantity (MW) | Heat Rate Incr (GJ/MWh) | Fuel Offtake (GJ/hr) | Fuel Cost ($/hr) | Marginal Cost ($/MWh) | Average Cost ($/hr) | Spot Revenue ($/hr) | Loss ($/hr) | Mark-up Required ($/MWh) | Offer Price ($/MWh) |
|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 150 | 300 | |||||||
| 100 | 100 | 9 | 1050 | 2100 | 18 | 21 | 1800 | 300 | 3 | 21 |
| 350 | 250 | 9 | 3300 | 6600 | 18 | 18.85714286 | 6300 | 300 | 0.857142857 | 18.85714286 |
| 400 | 50 | 14 | 4000 | 8000 | 28 | 20 | 11200 | -3200 | -8 | 28 |
In this table:
- Generation is the megawatt production level
- Band Quantity is the size of the offer band between the given load points
- Heat Rate Incr is the incremental heat rate in the offer band
- Fuel Offtake (Heat Rate Base + ∑ Heat Rate Incrb × Band Quantityb) is the total fuel consumed when the unit is loaded to the top of the offer band
- Fuel Cost (Fuel Offtake × Fuel Price) is the total cost
- Marginal Cost (Heat Rate Incr × Fuel Price) is the incremental cost of production in the offer band
- Average Cost (Fuel Cost / Generation) is the average cost of production
- Spot Revenue (Marginal Cost × Generation) is the revenue that would be paid to the generator based on its marginal cost in the offer band
- Loss (Fuel Cost - Spot Revenue) is the loss (positive) or gain (negative)
- Mark-up Required (Loss/Generation) is the mark-up (positive) or mark-down (negative) required for the generator to break even when the generator is loaded to the top of the offer band
- Offer Price (Marginal Cost + MAX(0, Mark-up Required)) is the final offer price in the band
Note that mark-up is only ever positive, and full recovery only occurs when the offer band is fully dispatched. Note further that in the multi-band case, the final offer prices might not be monotonically non-decreasing. If this is the case, integer decision variables are automatically introduced to enforce clearing of the offer bands in physical order.
The no-load cost mark-up is included in the reported properties Generator Mark-up and Offer Price.
Please refer to the article Heat Rate Modelling for an explanation of no-load cost.