Welcome to the California Energy Commission

Cost of Generation Model User's Guide Version 2: Based on Version 2 of the Cost of Generation Model


Cover of report

Download Staff Report, Posted 4/5/2010.
(PDF file, 114 pages, 1.3 megabytes - Note size!)



Publication Number: CEC-200-2010-002
Publication Date: April 2010

 

Report Attachment

Cost of Generation Model for Excel 2007 and Newer [.xlsm extension]. (Microsoft Excel file, 1.1 megabytes - Note: Excel Macro-Enabled Workbook)

Cost of Generation Model for Excel 2003-2007 [.xls extension]. (Microsoft Excel file, 3.0 megabytes)


Note: This model was used to create the December 2009 Energy Commission Staff Report Comparative Costs of California Central Station Electricity Generation (publication # CEC-200-2009-017-SF), which can be found at: www.energy.ca.gov/2009publications/CEC-200-2009-017/CEC-200-2009-017-SF.PDF (PDF file, 186 pages, 3.9 megabytes).

 


Abstract

The Cost of Generation Model User's Guide is a manual for using the California Energy Commission's Cost of Generation Model. The Energy Commission's Cost of Generation Model calculates levelized costs - the total costs of building and operating a power plant over its economic life converted to equal annual payments, in dollars per megawatt-hour and dollars per kilowatt-year. The levelized costs provide a basis for comparing the total costs of one power plant against another. These costs and the supporting data are essential inputs to many generation and transmission studies.

The Cost of Generation Model was first developed for the Energy Commission's 2003 Integrated Energy Policy Report and subsequently updated for the 2007 and 2009 policy report cycles. The present Cost of Generation Model and User's Guide were developed to support the 2009 Comparative Cost of California Central Station Electricity Generation Technologies Report. The present version of the Cost of Generation Model has preset data for 21 central station generation technologies-6 gas-fired, 13 renewable, nuclear, and coal-integrated gasification combined cycle-but has the ability to provide modified scenario data on existing technologies or to add additional technologies.

The User's Guide describes the Cost of Generation Model, its features, and how to use the Cost of Generation Model. The Cost of Generation Model has the ability to model all physical features including power plant and transmission losses, capacity and heat rate degradation, and emission factors. Calculated costs include capital cost, operation and maintenance costs, insurance, ad valorem, environmental compliance costs, construction cost, and taxes. The Cost of Generation Model has three additional features not commonly found in other cost of generation models: screening curves (levelized costs as a function of capacity factor), sensitivity curves (levelized costs as a function of various input costs), and wholesale electricity prices.



Keywords: cost of generation model, cog model, cost of electrical generation, cost of wholesale electricity, levelized costs, instant cost, overnight cost, installed cost, fuel cost, forecasting natural gas prices, fixed operation and maintenance, variable O&M, heat rate, technology, annual, alternative technologies, renewable technologies, combined cycle, simple cycle, combustion turbine, integrated gasification, coal, fuel, natural gas, nuclear fuel, heat rate degradation, capacity degradation, financial variables, capital structure, cost of capital, cost of debt, debt period, cost of equity, corporate taxes, tax benefits, depreciation period, tax credits, merchant, IOU, POU, and CEC-200-2009-017SF