19-12-2014, 06:47 AM

Tom on the VEDA Forum Wrote:Is it correct that CAP_NEW discounts from the middle of a period to it's start year if no NCAP_ILED is defined for a technology? In the global model, where periods have 10 years duration, this discounting factor increases the reported lump sum investment (LUMPINV) costs significantly compared to the calculation based on pure investment costs and new capacity (NCAP_COST x VAR_NCAP), in particular when NCAP_DRATE is high (e.g. as I assume for residential solar PV).

No, there is no discounting from the middle of a period to its start
year. To get the lump-sum investment cost, all the annual investment payments
are just discounted to the beginning of the commissioning year **k** associated to each payment stream. When neither
NCAP_ILED nor NCAP_DRATE is defined, the LUMPINV value should thus be equal to
NCAP_COST × VAR_NCAP. But if either of them is defined, the lump sum cost
will be higher, because with interest during construction or a higher required
rate of return, the present value of the investment payments at the
commissioning year will be higher than NCAP_COST × VAR_NCAP.