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LCOE includes parasitic operating cost in numerator, energy sales in denominator#749

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mjprilliman merged 49 commits into
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lcoe_lppa_energy_sales
Nov 16, 2021
Merged

LCOE includes parasitic operating cost in numerator, energy sales in denominator#749
mjprilliman merged 49 commits into
developfrom
lcoe_lppa_energy_sales

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-Option to calculate parasitic operating cost from PPA price or retail rate for all FOM technologies (can be revisited for certain technologies)
-Warnings about using PPA price to calculate operating costs when IRR Target solution mode is selected
-Defaults updates (include utility rate variables for FOM financial models)
-Closes #532

mjprilliman and others added 25 commits August 29, 2021 14:39
lcoe cash flow outputs to financial models where they were missing
target with PPA purchases not being allowed, new button to translate PPA
price to Utility rate
* Replace msgbox with UI labels.

* Set `en_electricity_rates` in UI equations to avoid issues with value not being set for parametric simulations.

* Remove Copy PPA/Merchant prices to retail rate button because the "Use PPA/Power Price" option should be equivalent to setting retail rate equal to power prices. I kept the code so we can put that feature back in if needed.
@mjprilliman mjprilliman added the financial Financial model label Nov 10, 2021
@mjprilliman mjprilliman added this to the SAM Fall 2021 Release milestone Nov 10, 2021
@mjprilliman mjprilliman self-assigned this Nov 10, 2021
update ppa_price_input), fixed startup typo, added option to ETES
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All of the PPA single owner configurations except PV Battery and Generic Battery have ppa_soln_mode = 0 (Specify IRR target) as default. For the changes in this PR, I think we will need to change the default for all PPA configurations to ppa_soln_mode = 1 (Specify PPA price), which means that we have to decide on an appropriate default PPA price for these configurations. One option is to use the PPA price result for the current defaults. Our decision on this should be documented in SAM-documentation to ensure it is preserved when we update defaults for the release: https://github.com/NREL/SAM-documentation/tree/master/Defaults%20References%20and%20Tools/Fall%202021

When the Electricity Purchases option is "Use PPA or market prices" (ui_electricity_rate_option = 0) with the Specify IRR target option (ppa_soln_mode = 0), the simulation runs without indicating that there is a problem in spite of the red text on the Electricity Purchases page: "The Use PPA or Market Prices option is not available with the Specify IRR Target option on the Revenue (or Financial Parameters) page. Either change the option to Specify PPA Price, or change the option here to Use Retail Electricity Rate(s)." If this is not a valid combination of inputs, I think SSC should generate an error.

I'm not sure how to validate the effect of this on LCOE, but I am seeing reasonable changes in LCOE, NPV, and cash flow outputs as I try different combinations of options, so I think this is OK to merge after the issues above are resolved.

@cpaulgilman I introduced ssc errors for that combination in the FOM configs, and changed the default to the Specify PPA price option for all the configs although I still need to put in reasonable PPA prices like you were suggesting. The defaults are still a mess until I get some time to run the test script so I would wait on a re-review until that is resolved.

@mjprilliman mjprilliman requested a review from brtietz November 16, 2021 16:52
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brtietz commented Nov 16, 2021

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Looks good overall, one nitpick:

On the cash flow tab "Net energy to grid" is no longer used in the LCOE calculations, this should be replaced with energy sales:

image

@mjprilliman

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Looks good overall, one nitpick:

On the cash flow tab "Net energy to grid" is no longer used in the LCOE calculations, this should be replaced with energy sales:

image

Can somebody push this change? My build is tied up with the test script on another branch. It should just be changing cf_energy_net to cf_energy_sales on line 676 of cashflow.lk

image

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@brtietz @cpaulgilman I'm planning to merge this before there are more conflicts unless there are any objections

@mjprilliman mjprilliman merged commit 0a792d0 into develop Nov 16, 2021
@cpaulgilman cpaulgilman added the added to release notes PR and/or issue has been added to release notes for a public release label Dec 2, 2021
@mjprilliman mjprilliman deleted the lcoe_lppa_energy_sales branch December 9, 2021 23:30
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Negative LPPA and LCOE for storage projects

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