Cost, O&M, and Revenue Calculation#
Cost and O&M#
Cost and O&M are calculated using the Hydropower Baseline Cost Modeling, Version 2 models (ORNL, 2015).
Initial Capital Cost (ICC)#
Cost for hydropower project is calcualted using the following equations (ORNL, 2015):
# |
Resource Category (HG) |
Cost Model Equation * |
|---|---|---|
1 |
‘Non-PoweredDam’ |
\(ICC = 11,489,245 P^{0.976} H^{-0.240}\) |
2 |
‘NewStream-reach’ |
\(ICC = 9,605,710 P^{0.977} H^{-0.126}\) |
3 |
‘CanalConduit’ |
\(ICC = 9,297,820 P^{0.810} H^{-0.102}\) |
4 |
‘PSH_ExistingInfrastructure’ |
\(ICC = 3,008,246 P e^{-0.000460P}\) |
5 |
‘PSH_Greenfield’ |
\(ICC = 8,882,655 P e^{-0.000776P}\) |
6 |
‘UnitAddition’ |
\(ICC = 4,163,746 P^{0.741}\) |
7 |
‘GeneratorRewind’ |
\(ICC = 250,147 P^{0.817}\) |
ICC in 2014$; P in MW; H in ft.
Taken from ORNL, (2015).
Operation and Maintennance (O&M)#
O&M costs are calcualted using the following equation:
The Hydropower Baseline Cost Modeling, Version 2 report (ORNL, 2015) recommends using the lesser of 2.5% of ICC or the result of the equation above. This recommendation is implemented in HG.
Revenue#
Revenue is computed assuming a unique electricty price. The default is 0.0582 $/kW, which is the average wholesale electricity price in 2023 https://www.eia.gov/electricity/wholesale/
References#
Oak Ridge Natiional Laboratory, 2015. Hydropower Baseline Cost Modeling, Version 2. https://info.ornl.gov/sites/publications/files/Pub58666.pdf