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
Detail:

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 ($) = ∑ Build Cost_b ($/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.