Cost Assumptions

The database of cost assumptions is stored in data/costs.csv.

It includes cost assumptions for all included technologies for specific years from various sources, namely for

  • discount rate,

  • lifetime,

  • investment (CAPEX),

  • fixed operation and maintenance (FOM),

  • variable operation and maintenance (VOM),

  • fuel costs,

  • efficiency, and

  • carbon-dioxide intensity.

The given overnight capital costs are annualised to net present costs with a discount rate of \(r\) over the economic lifetime \(n\) using the annuity factor

\[a = \frac{1-(1+r)^{-n}}{r}.\]

Based on the parameters above the marginal_cost and capital_cost of the system components are calculated.

Note

Another great resource for cost assumptions is the cost database from the Danish Energy Agency.

Modifying Cost Assumptions

Some cost assumptions (e.g. marginal cost and capital cost) can be directly overwritten in the config.yaml (cf. Section costs in Configuration).

To change cost assumptions in more detail, modify cost assumptions directly in data/costs.csv as this is not yet supported through the config file.

You can also build multiple different cost databases. Make a renamed copy of data/costs.csv (e.g. data/costs-optimistic.csv) and set the variable COSTS=data/costs-optimistic.csv in the Snakefile.

Default Cost Assumptions

technology

year

parameter

value

unit

source

solar-rooftop

2030

discount rate

0.04

per unit

standard for decentral

onwind

2030

lifetime

30

years

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

offwind

2030

lifetime

30

years

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

solar

2030

lifetime

25

years

IEA2010

solar-rooftop

2030

lifetime

25

years

IEA2010

solar-utility

2030

lifetime

25

years

IEA2010

PHS

2030

lifetime

80

years

IEA2010

hydro

2030

lifetime

80

years

IEA2010

ror

2030

lifetime

80

years

IEA2010

OCGT

2030

lifetime

30

years

IEA2010

nuclear

2030

lifetime

45

years

ECF2010 in DIW DataDoc http://hdl.handle.net/10419/80348

CCGT

2030

lifetime

30

years

IEA2010

coal

2030

lifetime

40

years

IEA2010

lignite

2030

lifetime

40

years

IEA2010

geothermal

2030

lifetime

40

years

IEA2010

biomass

2030

lifetime

30

years

ECF2010 in DIW DataDoc http://hdl.handle.net/10419/80348

oil

2030

lifetime

30

years

ECF2010 in DIW DataDoc http://hdl.handle.net/10419/80348

onwind

2030

investment

1040

EUR/kWel

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

offwind

2030

investment

1640

EUR/kWel

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

offwind-ac-station

2030

investment

250

EUR/kWel

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

offwind-ac-connection-submarine

2030

investment

2685

EUR/MW/km

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

offwind-ac-connection-underground

2030

investment

1342

EUR/MW/km

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

offwind-dc-station

2030

investment

400

EUR/kWel

Haertel 2017; assuming one onshore and one offshore node + 13% learning reduction

offwind-dc-connection-submarine

2030

investment

2000

EUR/MW/km

DTU report based on Fig 34 of https://ec.europa.eu/energy/sites/ener/files/documents/2014_nsog_report.pdf

offwind-dc-connection-underground

2030

investment

1000

EUR/MW/km

Haertel 2017; average + 13% learning reduction

solar

2030

investment

600

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

biomass

2030

investment

2209

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

geothermal

2030

investment

3392

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

coal

2030

investment

1300

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348 PC (Advanced/SuperC)

lignite

2030

investment

1500

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

solar-rooftop

2030

investment

725

EUR/kWel

ETIP PV

solar-utility

2030

investment

425

EUR/kWel

ETIP PV

PHS

2030

investment

2000

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

hydro

2030

investment

2000

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

ror

2030

investment

3000

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

OCGT

2030

investment

400

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

nuclear

2030

investment

6000

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

CCGT

2030

investment

800

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

oil

2030

investment

400

EUR/kWel

DIW DataDoc http://hdl.handle.net/10419/80348

onwind

2030

FOM

2.450549

%/year

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

offwind

2030

FOM

2.304878

%/year

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

solar

2030

FOM

4.166667

%/year

DIW DataDoc http://hdl.handle.net/10419/80348

solar-rooftop

2030

FOM

2

%/year

ETIP PV

solar-utility

2030

FOM

3

%/year

ETIP PV

biomass

2030

FOM

4.526935

%/year

DIW DataDoc http://hdl.handle.net/10419/80348

geothermal

2030

FOM

2.358491

%/year

DIW DataDoc http://hdl.handle.net/10419/80348

coal

2030

FOM

1.923076

%/year

DIW DataDoc http://hdl.handle.net/10419/80348 PC (Advanced/SuperC)

lignite

2030

FOM

2.0

%/year

DIW DataDoc http://hdl.handle.net/10419/80348 PC (Advanced/SuperC)

oil

2030

FOM

1.5

%/year

DIW DataDoc http://hdl.handle.net/10419/80348

PHS

2030

FOM

1

%/year

DIW DataDoc http://hdl.handle.net/10419/80348

hydro

2030

FOM

1

%/year

DIW DataDoc http://hdl.handle.net/10419/80348

ror

2030

FOM

2

%/year

DIW DataDoc http://hdl.handle.net/10419/80348

CCGT

2030

FOM

2.5

%/year

DIW DataDoc http://hdl.handle.net/10419/80348

OCGT

2030

FOM

3.75

%/year

DIW DataDoc http://hdl.handle.net/10419/80348

onwind

2030

VOM

2.3

EUR/MWhel

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

offwind

2030

VOM

2.7

EUR/MWhel

DEA https://ens.dk/en/our-services/projections-and-models/technology-data

solar

2030

VOM

0.01

EUR/MWhel

RES costs made up to fix curtailment order

coal

2030

VOM

6

EUR/MWhel

DIW DataDoc http://hdl.handle.net/10419/80348 PC (Advanced/SuperC)

lignite

2030

VOM

7

EUR/MWhel

DIW DataDoc http://hdl.handle.net/10419/80348

CCGT

2030

VOM

4

EUR/MWhel

DIW DataDoc http://hdl.handle.net/10419/80348

OCGT

2030

VOM

3

EUR/MWhel

DIW DataDoc http://hdl.handle.net/10419/80348

nuclear

2030

VOM

8

EUR/MWhel

DIW DataDoc http://hdl.handle.net/10419/80348

gas

2030

fuel

21.6

EUR/MWhth

IEA2011b

uranium

2030

fuel

3

EUR/MWhth

DIW DataDoc http://hdl.handle.net/10419/80348

oil

2030

VOM

3

EUR/MWhel

DIW DataDoc http://hdl.handle.net/10419/80348

nuclear

2030

fuel

3

EUR/MWhth

IEA2011b

biomass

2030

fuel

7

EUR/MWhth

IEA2011b

coal

2030

fuel

8.4

EUR/MWhth

IEA2011b

lignite

2030

fuel

2.9

EUR/MWhth

IEA2011b

oil

2030

fuel

50

EUR/MWhth

IEA WEM2017 97USD/boe = http://www.iea.org/media/weowebsite/2017/WEM_Documentation_WEO2017.pdf

PHS

2030

efficiency

0.75

per unit

DIW DataDoc http://hdl.handle.net/10419/80348

hydro

2030

efficiency

0.9

per unit

DIW DataDoc http://hdl.handle.net/10419/80348

ror

2030

efficiency

0.9

per unit

DIW DataDoc http://hdl.handle.net/10419/80348

OCGT

2030

efficiency

0.39

per unit

DIW DataDoc http://hdl.handle.net/10419/80348

CCGT

2030

efficiency

0.5

per unit

DIW DataDoc http://hdl.handle.net/10419/80348

biomass

2030

efficiency

0.468

per unit

DIW DataDoc http://hdl.handle.net/10419/80348

geothermal

2030

efficiency

0.239

per unit

DIW DataDoc http://hdl.handle.net/10419/80348

nuclear

2030

efficiency

0.337

per unit

DIW DataDoc http://hdl.handle.net/10419/80348

gas

2030

CO2 intensity

0.187

tCO2/MWth

https://www.eia.gov/environment/emissions/co2_vol_mass.php

coal

2030

efficiency

0.464

per unit

DIW DataDoc http://hdl.handle.net/10419/80348 PC (Advanced/SuperC)

lignite

2030

efficiency

0.447

per unit

DIW DataDoc http://hdl.handle.net/10419/80348

oil

2030

efficiency

0.393

per unit

DIW DataDoc http://hdl.handle.net/10419/80348 CT

coal

2030

CO2 intensity

0.354

tCO2/MWth

https://www.eia.gov/environment/emissions/co2_vol_mass.php

lignite

2030

CO2 intensity

0.334

tCO2/MWth

https://www.eia.gov/environment/emissions/co2_vol_mass.php

oil

2030

CO2 intensity

0.248

tCO2/MWth

https://www.eia.gov/environment/emissions/co2_vol_mass.php

geothermal

2030

CO2 intensity

0.026

tCO2/MWth

https://www.eia.gov/environment/emissions/co2_vol_mass.php

electrolysis

2030

investment

350

EUR/kWel

Palzer Thesis

electrolysis

2030

FOM

4

%/year

NREL http://www.nrel.gov/docs/fy09osti/45873.pdf; budischak2013

electrolysis

2030

lifetime

18

years

NREL http://www.nrel.gov/docs/fy09osti/45873.pdf; budischak2013

electrolysis

2030

efficiency

0.8

per unit

NREL http://www.nrel.gov/docs/fy09osti/45873.pdf; budischak2013

fuel cell

2030

investment

339

EUR/kWel

NREL http://www.nrel.gov/docs/fy09osti/45873.pdf; budischak2013

fuel cell

2030

FOM

3

%/year

NREL http://www.nrel.gov/docs/fy09osti/45873.pdf; budischak2013

fuel cell

2030

lifetime

20

years

NREL http://www.nrel.gov/docs/fy09osti/45873.pdf; budischak2013

fuel cell

2030

efficiency

0.58

per unit

NREL http://www.nrel.gov/docs/fy09osti/45873.pdf; budischak2013 conservative 2020

hydrogen storage

2030

investment

11.2

USD/kWh

budischak2013

hydrogen storage

2030

lifetime

20

years

budischak2013

hydrogen underground storage

2030

investment

0.5

EUR/kWh

maximum from https://www.nrel.gov/docs/fy10osti/46719.pdf

hydrogen underground storage

2030

lifetime

40

years

http://www.acatech.de/fileadmin/user_upload/Baumstruktur_nach_Website/Acatech/root/de/Publikationen/Materialien/ESYS_Technologiesteckbrief_Energiespeicher.pdf

H2 pipeline

2030

investment

267

EUR/MW/km

Welder et al https://doi.org/10.1016/j.ijhydene.2018.12.156

H2 pipeline

2030

lifetime

40

years

Krieg2012 http://juser.fz-juelich.de/record/136392/files/Energie%26Umwelt_144.pdf

H2 pipeline

2030

FOM

5

%/year

Krieg2012 http://juser.fz-juelich.de/record/136392/files/Energie%26Umwelt_144.pdf

H2 pipeline

2030

efficiency

0.98

per unit

Krieg2012 http://juser.fz-juelich.de/record/136392/files/Energie%26Umwelt_144.pdf

methanation

2030

investment

1000

EUR/kWH2

Schaber thesis

methanation

2030

lifetime

25

years

Schaber thesis

methanation

2030

FOM

3

%/year

Schaber thesis

methanation

2030

efficiency

0.6

per unit

Palzer; Breyer for DAC

helmeth

2030

investment

1000

EUR/kW

no source

helmeth

2030

lifetime

25

years

no source

helmeth

2030

FOM

3

%/year

no source

helmeth

2030

efficiency

0.8

per unit

HELMETH press release

DAC

2030

investment

250

EUR/(tCO2/a)

Fasihi/Climeworks

DAC

2030

lifetime

30

years

Fasihi

DAC

2030

FOM

4

%/year

Fasihi

battery inverter

2030

investment

411

USD/kWel

budischak2013

battery inverter

2030

lifetime

20

years

budischak2013

battery inverter

2030

efficiency

0.9

per unit charge/discharge

budischak2013; Lund and Kempton (2008) http://dx.doi.org/10.1016/j.enpol.2008.06.007

battery inverter

2030

FOM

3

%/year

budischak2013

battery storage

2030

investment

192

USD/kWh

budischak2013

battery storage

2030

lifetime

15

years

budischak2013

decentral air-sourced heat pump

2030

investment

1050

EUR/kWth

HP; Palzer thesis

decentral air-sourced heat pump

2030

lifetime

20

years

HP; Palzer thesis

decentral air-sourced heat pump

2030

FOM

3.5

%/year

Palzer thesis

decentral air-sourced heat pump

2030

efficiency

3

per unit

default for costs

decentral air-sourced heat pump

2030

discount rate

0.04

per unit

Palzer thesis

decentral ground-sourced heat pump

2030

investment

1400

EUR/kWth

Palzer thesis

decentral ground-sourced heat pump

2030

lifetime

20

years

Palzer thesis

decentral ground-sourced heat pump

2030

FOM

3.5

%/year

Palzer thesis

decentral ground-sourced heat pump

2030

efficiency

4

per unit

default for costs

decentral ground-sourced heat pump

2030

discount rate

0.04

per unit

Palzer thesis

central air-sourced heat pump

2030

investment

700

EUR/kWth

Palzer thesis

central air-sourced heat pump

2030

lifetime

20

years

Palzer thesis

central air-sourced heat pump

2030

FOM

3.5

%/year

Palzer thesis

central air-sourced heat pump

2030

efficiency

3

per unit

default for costs

retrofitting I

2030

discount rate

0.04

per unit

Palzer thesis

retrofitting I

2030

lifetime

50

years

Palzer thesis

retrofitting I

2030

FOM

1

%/year

Palzer thesis

retrofitting I

2030

investment

50

EUR/m2/fraction reduction

Palzer thesis

retrofitting II

2030

discount rate

0.04

per unit

Palzer thesis

retrofitting II

2030

lifetime

50

years

Palzer thesis

retrofitting II

2030

FOM

1

%/year

Palzer thesis

retrofitting II

2030

investment

250

EUR/m2/fraction reduction

Palzer thesis

water tank charger

2030

efficiency

0.9

per unit

HP

water tank discharger

2030

efficiency

0.9

per unit

HP

decentral water tank storage

2030

investment

860

EUR/m3

IWES Interaktion

decentral water tank storage

2030

FOM

1

%/year

HP

decentral water tank storage

2030

lifetime

20

years

HP

decentral water tank storage

2030

discount rate

0.04

per unit

Palzer thesis

central water tank storage

2030

investment

30

EUR/m3

IWES Interaktion

central water tank storage

2030

FOM

1

%/year

HP

central water tank storage

2030

lifetime

40

years

HP

decentral resistive heater

2030

investment

100

EUR/kWhth

Schaber thesis

decentral resistive heater

2030

lifetime

20

years

Schaber thesis

decentral resistive heater

2030

FOM

2

%/year

Schaber thesis

decentral resistive heater

2030

efficiency

0.9

per unit

Schaber thesis

decentral resistive heater

2030

discount rate

0.04

per unit

Palzer thesis

central resistive heater

2030

investment

100

EUR/kWhth

Schaber thesis

central resistive heater

2030

lifetime

20

years

Schaber thesis

central resistive heater

2030

FOM

2

%/year

Schaber thesis

central resistive heater

2030

efficiency

0.9

per unit

Schaber thesis

decentral gas boiler

2030

investment

175

EUR/kWhth

Palzer thesis

decentral gas boiler

2030

lifetime

20

years

Palzer thesis

decentral gas boiler

2030

FOM

2

%/year

Palzer thesis

decentral gas boiler

2030

efficiency

0.9

per unit

Palzer thesis

decentral gas boiler

2030

discount rate

0.04

per unit

Palzer thesis

central gas boiler

2030

investment

63

EUR/kWhth

Palzer thesis

central gas boiler

2030

lifetime

22

years

Palzer thesis

central gas boiler

2030

FOM

1

%/year

Palzer thesis

central gas boiler

2030

efficiency

0.9

per unit

Palzer thesis

decentral CHP

2030

lifetime

25

years

HP

decentral CHP

2030

investment

1400

EUR/kWel

HP

decentral CHP

2030

FOM

3

%/year

HP

decentral CHP

2030

discount rate

0.04

per unit

Palzer thesis

central CHP

2030

lifetime

25

years

HP

central CHP

2030

investment

650

EUR/kWel

HP

central CHP

2030

FOM

3

%/year

HP

decentral solar thermal

2030

discount rate

0.04

per unit

Palzer thesis

decentral solar thermal

2030

FOM

1.3

%/year

HP

decentral solar thermal

2030

investment

270000

EUR/1000m2

HP

decentral solar thermal

2030

lifetime

20

years

HP

central solar thermal

2030

FOM

1.4

%/year

HP

central solar thermal

2030

investment

140000

EUR/1000m2

HP

central solar thermal

2030

lifetime

20

years

HP

HVAC overhead

2030

investment

400

EUR/MW/km

Hagspiel

HVAC overhead

2030

lifetime

40

years

Hagspiel

HVAC overhead

2030

FOM

2

%/year

Hagspiel

HVDC overhead

2030

investment

400

EUR/MW/km

Hagspiel

HVDC overhead

2030

lifetime

40

years

Hagspiel

HVDC overhead

2030

FOM

2

%/year

Hagspiel

HVDC submarine

2030

investment

2000

EUR/MW/km

DTU report based on Fig 34 of https://ec.europa.eu/energy/sites/ener/files/documents/2014_nsog_report.pdf

HVDC submarine

2030

lifetime

40

years

Hagspiel

HVDC submarine

2030

FOM

2

%/year

Hagspiel

HVDC inverter pair

2030

investment

150000

EUR/MW

Hagspiel

HVDC inverter pair

2030

lifetime

40

years

Hagspiel

HVDC inverter pair

2030

FOM

2

%/year

Hagspiel