Definition of energy price and capacity price

[wanyingw193]

Hi NREL team,

In reeds2.py, there are terms called energy price and capacity price. What are the definitions of these two prices? Thank you very much!

[wesleyjcole]

The prices are calculated based on the marginals on the constraints. You can trace the parameters froms reeds2.py upstream to see how they are calculated (in e_report.gms):

*Load and operating reserve prices are $/MWh, and reserve margin price is $/kW-yr
reqt_price('load','na',r,h,t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_supply_demand_balance.m(r,h,t) / hours(h) ;
reqt_price('res_marg','na',r,szn,t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_reserve_margin.m(r,szn,t) / 1000 ;
reqt_price('res_marg_ann','na',r,'ann',t)$[rfeas(r)$tmodel_new(t)] = sum{szn, reqt_price('res_marg','na',r,szn,t) } ;
reqt_price('oper_res',ortype,r,h,t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_OpRes_requirement.m(ortype,r,h,t) / hours(h) ;
reqt_price('state_rps',RPSCat,r,'ann',t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * sum{st$r_st(r,st), eq_REC_Requirement.m(RPSCat,st,t) } ;
reqt_price('nat_gen','na',r,'ann',t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_national_gen.m(t) ;
reqt_price('annual_cap',e,r,'ann',t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * emit_scale(e) * eq_annual_cap.m(e,t) ;

[yuanmei39]

Based on the c_supplymodel.gms (main branch), here are the itemized costs I see with respect to 1 MW increase in LOAD at the margin. I greyed out the original calculation and added two more price components related to unbundled and imported RECS. I haven’t run the model and checked any errors associated with the calculation, but adding up the cost at a consistent level (hour or annual with cost scale and value conversion) should match the model reporting of marginals on LOAD for a handshake. reqt_price('load','na',r,h,t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_supply_demand_balance.m(r,h,t) / hours(h); reqt_price('oper_res',ortype,r,h,t)$[rfeas(r)$tmodel_new(t)] *. = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_OpRes_requirement.m(ortype,r,h,t) / hours(h) ; = (1 / cost_scale) * (1 / pvf_onm(t)) * orperc(ortype,"or_load")*eq_OpRes_requirement.m(ortype,r,h,t) / hours(h); reqt_price('nat_gen','na',r,'ann',t)$[rfeas(r)$tmodel_new(t)] *. = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_national_gen.m(t) ; = (1 / cost_scale) * (1 / pvf_onm(t)) * national_gen_frac(t)*eq_national_gen.m(t)* (1$[Sw_GenMandate = 1] + (1.0 - distloss)$[Sw_GenMandate = 2]); reqt_price('state_rps',RPSCat,r,'ann',t)$[rfeas(r)$tmodel_new(t)] *. = (1 / cost_scale) * (1 / pvf_onm(t)) * sum{st$r_st(r,st), eq_REC_Requirement.m(RPSCat,st,t) } ; = (1 / cost_scale) * (1 / pvf_onm(t)) * sum{st$r_st(r,st), RecPerc(RPSCat,st,t)*eq_REC_Requirement.m(RPSCat,st,t)*(1.0 - distloss) }; * Unbundled RECs reqt_price('Rec_unbundled',RPSCat,r,'ann',t)$[rfeas(r)$tmodel_new(t)] = - (1 / cost_scale) * (1 / pvf_onm(t)) *sum{st$r_st(r,st), REC_unbundled_limit(RPSCat,st,t)*RecPerc(RPSCat,st,t)*eq_REC_unbundledLimit.m(RPSCat,st,t)*(1.0 - distloss) }; * Imported RECs reqt_price('Rec_ooslim',RPSCat,r,'ann',t)$[rfeas(r)$tmodel_new(t)] = - (1 / cost_scale) * (1 / pvf_onm(t)) *sum{st$r_st(r,st), RPS_oosfrac(st) * RecPerc(RPSCat,st,t)*eq_REC_ooslim.m(RPSCat,st,t)*(1.0 - distloss) }; Mei From: Wesley Cole ***@***.***> Sent: Monday, January 16, 2023 12:01 PM To: NREL/ReEDS_OpenAccess ***@***.***> Cc: Subscribed ***@***.***> Subject: Re: [NREL/ReEDS_OpenAccess] Definition of energy price and capacity price (Discussion #137) The prices are calculated based on the marginals on the constraints. You can trace the parameters froms reeds2.py upstream to see how they are calculated (in e_report.gms): *Load and operating reserve prices are $/MWh, and reserve margin price is $/kW-yr reqt_price('load','na',r,h,t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_supply_demand_balance.m(r,h,t) / hours(h) ; reqt_price('res_marg','na',r,szn,t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_reserve_margin.m(r,szn,t) / 1000 ; reqt_price('res_marg_ann','na',r,'ann',t)$[rfeas(r)$tmodel_new(t)] = sum{szn, reqt_price('res_marg','na',r,szn,t) } ; reqt_price('oper_res',ortype,r,h,t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_OpRes_requirement.m(ortype,r,h,t) / hours(h) ; reqt_price('state_rps',RPSCat,r,'ann',t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * sum{st$r_st(r,st), eq_REC_Requirement.m(RPSCat,st,t) } ; reqt_price('nat_gen','na',r,'ann',t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * eq_national_gen.m(t) ; reqt_price('annual_cap',e,r,'ann',t)$[rfeas(r)$tmodel_new(t)] = (1 / cost_scale) * (1 / pvf_onm(t)) * emit_scale(e) * eq_annual_cap.m(e,t) ; — Reply to this email directly, view it on GitHub<#137 (comment)>, or unsubscribe<https://github.com/notifications/unsubscribe-auth/AEWI26CT7N7YZN6MZW3SCL3WSV5EVANCNFSM6AAAAAAT4AZSXE>. You are receiving this because you are subscribed to this thread.Message ID: ***@***.******@***.***>>