Generator Mark-up

Units: $/MWh
Mode: Input/Output
Multi-band: True
Default Value: 0
Validation Rule: Any Value
Key Property: No
Description: Mark-up above marginal cost
Detail:

Generator Mark-up is the absolute amount that the generation of the unit is marked up above marginal cost. If you prefer to use a relative mark-up, use the property Bid Cost Mark-up. It is both an input property (where it sets the mark-up) and an output (where the mark-up is reported). Mark-up is multi-band as input and output.

Input

The Mark-up property provides a convenient way of applying a simple adder to marginal cost without having to define multi-band offers. When the generator offer is missing (i.e.Offer Price and Offer Quantity are not defined) the generator's offers will be based on SRMC plus any defined mark-up. Thus Generator Mark-up affects the of a generator but does not form part of its Generation Cost.

Mark-up is multi-band so that mark-ups can change across the range of generation. You have the choice of matching the mark-up breakpoints with input Load Points, manually defining the breakpoints using Mark-up Point or having the simulator create an even set of breakpoints i.e.:

  • If you define Mark-up Point the simulator will use this to define the breakpoints;
  • otherwise if you define Load Point and provide the same number of bands of Mark-up then the simulator will match the mark-up to the load points.
  • otherwise if you provide more or less bands of Mark-up than load point (or do not define load point at all) the simulator will divide the normal generation range into even sized bands and apply the defined mark-ups.

By default, the mark-up is applied only to generation above Min Stable Level. This can be changed with the Competition Mark-up MSL attribute.

Examples

In the following examples three generators each of 100MW illustrate some of the possible applications of Mark-up:

  • "U1" defines a $2.00 mark-up which will be applied uniformly across its normal generating range of 40-100MW.
  • "U2" defines a 10-band mark-up but because it does not also define Load Point in 10 bands, PLEXOS will divides the range 40-100MW in 10 bands each of 6MW and apply the 10-band mark-ups. Note that you can still use load points here to define the heat rate function.
  • "U3" defines a heat rate function using three bands and also provides three bands for Mark-up. Thus PLEXOS will match the mark-up breakpoints to the load points, but exclude the first 40MW from being marked up (unless the above mentioned setting is changed).
Generator Property Value Units Band
U1 Units 1 - 1
U1 Max Capacity 100 MW 1
U1 Fuel Price 1 $/MMBTU 1
U1 Heat Rate Incr 10000 BTU/kWh 1
U1 Min Stable Level 40 MW 1
U1 Mark-up 2 $/MWh 1
U2 Units 1 - 1
U2 Max Capacity 100 MW 1
U2 Fuel Price 2 $/MMBTU 1
U2 Heat Rate Incr 10000 BTU/kWh 1
U2 Min Stable Level 40 MW 1
U2 Mark-up 1 $/MWh 1
U2 Mark-up 2 $/MWh 2
U2 Mark-up 3 $/MWh 3
U2 Mark-up 4 $/MWh 4
U2 Mark-up 5 $/MWh 5
U2 Mark-up 6 $/MWh 6
U2 Mark-up 7 $/MWh 7
U2 Mark-up 8 $/MWh 8
U2 Mark-up 9 $/MWh 9
U2 Mark-up 10 $/MWh 10
U3 Units 1 - 1
U3 Max Capacity 100 MW 1
U3 Load Point 40 MW 1
U3 Load Point 65 MW 2
U3 Load Point 90 MW 3
U3 Fuel Price 3 $/MMBTU 1
U3 Heat Rate Incr 9000 BTU/kWh 1
U3 Heat Rate Incr 10000 BTU/kWh 2
U3 Heat Rate Incr 11000 BTU/kWh 3
U3 Min Stable Level 40 MW 1
U3 Mark-up 1 $/MWh 1
U3 Mark-up 2 $/MWh 2
U3 Mark-up 3 $/MWh 3

Notes:

  • Mark-ups will be cleared in cost order. There is currently no equivalent to the option Offers Must Clear in Order for Mark-ups. If you require offers that are non-convex in nature then set this option and use Offer Quantity and Offer Price.
  • PLEXOS provides a Competition attribute for automatically adding in a No Load Cost Mark-up to generator offers i.e. to compensate for the difference between marginal and average cost.
Output

The Mark-up output is defined as:

Mark-up = Mark-up (as above) - Strategic Shadow Price - Sales Target Shadow Price

The latter two terms reflect the marginal effect of CompanyStrategic constraints and Nash-Cournot volume targets respectively.

Generator Mark-up in output is the amount of mark-up applied in each band over and above the Cost Price. These mark-ups might be input directly (as above) or computed automatically as part of a gaming algorithm.

Examples

The input in the above table produce the following output:

Generator Property Units Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 Band 9 Band 10
U1 Offer Quantity MW 100
Offer Price $/MWh 12
Cost Price $/MWh 10
Mark-up $/MWh 2
Bid Cost Mark-up % 20
U2 Offer Quantity MW 46 6 6 6 6 6 6 6 6 6
Offer Price $/MWh 21 22 23 24 25 26 27 28 29 30
Cost Price $/MWh 20 20 20 20 20 20 20 20 20 20
Mark-up $/MWh 1 2 3 4 5 6 7 8 9 10
Bid Cost Mark-up % 5 10 15 20 25 30 35 40 45 50
U3 Offer Quantity MW 40 25 25
Offer Price $/MWh 28 32 36
Cost Price $/MWh 27 30 33
Mark-up $/MWh 1 2 3
Bid Cost Mark-up % 3.70 6.67 9.09