Defining ppriority and pwidth of ALLOCATE AVAILABLE function
Posted: Thu Mar 01, 2018 11:53 am
Hi Tomfid and Administrator,
I have a question about defining the ppriority and pwidth of the ALLOCATE AVAILABLE function. Suppose I have 2 types of power plants to construct to meet an increasing power demand (exogenous).
- For Plant A, its average capital cost is 1000 USD/KW and standard deviation is 200 USD/kW. Assuming that I only care capital cost and ignore O&M and fuel costs, so I use -1000 for ppriority and 200 for pwidth.
- For Plant B, its average capital cost is 1500 USD/KW and standard deviation is 400 USD/kW. Assuming that I only care capital cost and ignore O&M and fuel costs, so I use -1500 for ppriority and 400 for pwidth.
For both, ptype is 3, i.e. normal distribution. Based on the above defined priority profiles, and assuming the available capacities/resources to construct both types are much higher than the power demand, ALLOCATE AVAILABLE can produce the installed capacities of both types over time.
The above is based purely on cost consideration. Now, I also want to take plant efficiency into consideration when defining the priority profiles. Suppose plant A's efficiency is 30%, whereas plant B's efficiency is 50%, then apparently the efficiency levels have an impact on the prioritization.
My question is how could the efficiency be "integrated" with the cost consideration in the definition of priority profile of ALLOCATE AVAILABLE function?
I understand this may sound like an optimization problem for which each a VECTOR LOOKUP or a closed-form solution could solve, as Tomfid kindly advised in my previous post (http://www.ventanasystems.co.uk/forum/v ... f=2&t=6873 ). But the issue here is that the capital cost is a range, rather than a single number. So how should priority (or, attractiveness) be formulated in such a situation? Would something like the following equation still make sense in the context of ALLOCATE AVAILABLE function? How to deal with the standard deviation then?
Plant A ppriority = EXP((Average capital cost of plant A / Reference capital cost)*Cost Sensitivity ) * EXP((Efficiency of plant A / Reference efficiency)*Efficiency Sensitivity )
Thank you so much.
I have a question about defining the ppriority and pwidth of the ALLOCATE AVAILABLE function. Suppose I have 2 types of power plants to construct to meet an increasing power demand (exogenous).
- For Plant A, its average capital cost is 1000 USD/KW and standard deviation is 200 USD/kW. Assuming that I only care capital cost and ignore O&M and fuel costs, so I use -1000 for ppriority and 200 for pwidth.
- For Plant B, its average capital cost is 1500 USD/KW and standard deviation is 400 USD/kW. Assuming that I only care capital cost and ignore O&M and fuel costs, so I use -1500 for ppriority and 400 for pwidth.
For both, ptype is 3, i.e. normal distribution. Based on the above defined priority profiles, and assuming the available capacities/resources to construct both types are much higher than the power demand, ALLOCATE AVAILABLE can produce the installed capacities of both types over time.
The above is based purely on cost consideration. Now, I also want to take plant efficiency into consideration when defining the priority profiles. Suppose plant A's efficiency is 30%, whereas plant B's efficiency is 50%, then apparently the efficiency levels have an impact on the prioritization.
My question is how could the efficiency be "integrated" with the cost consideration in the definition of priority profile of ALLOCATE AVAILABLE function?
I understand this may sound like an optimization problem for which each a VECTOR LOOKUP or a closed-form solution could solve, as Tomfid kindly advised in my previous post (http://www.ventanasystems.co.uk/forum/v ... f=2&t=6873 ). But the issue here is that the capital cost is a range, rather than a single number. So how should priority (or, attractiveness) be formulated in such a situation? Would something like the following equation still make sense in the context of ALLOCATE AVAILABLE function? How to deal with the standard deviation then?
Plant A ppriority = EXP((Average capital cost of plant A / Reference capital cost)*Cost Sensitivity ) * EXP((Efficiency of plant A / Reference efficiency)*Efficiency Sensitivity )
Thank you so much.