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

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	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 Incr_b × Band Quantity_b) 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 &times 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.