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

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 order of the generators bidding into the market, 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 Company Strategic 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