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:

\[Annual O\&M (2014\$) = 225,417 P^{0.547}\]

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