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Apply ITC credit as revenue after construction rather than deduction of capital costs
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3 files changed

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-28
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‎src/geophires_x/Economics.py

Lines changed: 10 additions & 4 deletions
Original file line numberDiff line numberDiff line change
@@ -2701,10 +2701,10 @@ def Calculate(self, model: Model) -> None:
27012701
else:
27022702
self.CCap.value = self.totalcapcost.value
27032703

2704-
# update the capital costs, assuming the entire ITC is used to reduce the capital costs
2705-
if self.RITC.Provided:
2706-
self.RITCValue.value = self.RITC.value * self.CCap.value
2707-
self.CCap.value = self.CCap.value - self.RITCValue.value
2704+
# # update the capital costs, assuming the entire ITC is used to reduce the capital costs
2705+
# if self.RITC.Provided:
2706+
# self.RITCValue.value = self.RITC.value * self.CCap.value
2707+
# self.CCap.value = self.CCap.value - self.RITCValue.value
27082708

27092709
# Add in the FlatLicenseEtc, OtherIncentives, & TotalGrant
27102710
self.CCap.value = self.CCap.value + self.FlatLicenseEtc.value - self.OtherIncentives.value - self.TotalGrant.value
@@ -2942,6 +2942,12 @@ def Calculate(self, model: Model) -> None:
29422942
model.surfaceplant.plant_lifetime.value + model.surfaceplant.construction_years.value, 1):
29432943
self.TotalRevenue.value[i] = self.TotalRevenue.value[i] - self.Coam.value
29442944

2945+
2946+
if self.RITC.Provided:
2947+
self.RITCValue.value = self.RITC.value * self.CCap.value
2948+
# ITC is credited year after construction
2949+
self.TotalRevenue.value[model.surfaceplant.construction_years.value] += self.RITCValue.value
2950+
29452951
# Now do a one-time calculation that calculates the cumulative cash flow after everything else has been accounted for
29462952
for i in range(1, model.surfaceplant.plant_lifetime.value + model.surfaceplant.construction_years.value, 1):
29472953
self.TotalCummRevenue.value[i] = self.TotalCummRevenue.value[i-1] + self.TotalRevenue.value[i]

‎tests/examples/Fervo_Project_Cape-3.out

Lines changed: 12 additions & 12 deletions
Original file line numberDiff line numberDiff line change
@@ -4,16 +4,16 @@
44

55
Simulation Metadata
66
----------------------
7-
GEOPHIRES Version: 3.7.23
8-
Simulation Date: 2025-03-10
9-
Simulation Time: 10:42
10-
Calculation Time: 0.871 sec
7+
GEOPHIRES Version: 3.8.9
8+
Simulation Date: 2025-04-02
9+
Simulation Time: 12:28
10+
Calculation Time: 0.853 sec
1111

1212
***SUMMARY OF RESULTS***
1313

1414
End-Use Option: Electricity
1515
Average Net Electricity Production: 404.31 MW
16-
Electricity breakeven price: 2.77 cents/kWh
16+
Electricity breakeven price: 3.59 cents/kWh
1717
Number of production wells: 39
1818
Number of injection wells: 39
1919
Flowrate per production well: 120.0 kg/sec
@@ -27,10 +27,10 @@ Simulation Metadata
2727
Accrued financing during construction: 5.00
2828
Project lifetime: 20 yr
2929
Capacity factor: 90.0 %
30-
Project NPV: 4580.36 MUSD
31-
Project IRR: 43.75 %
32-
Project VIR=PI=PIR: 5.27
33-
Project MOIC: 6.30
30+
Project NPV: 4550.28 MUSD
31+
Project IRR: 39.26 %
32+
Project VIR=PI=PIR: 3.97
33+
Project MOIC: 4.91
3434
Project Payback Period: 3.38 yr
3535
Estimated Jobs Created: 976
3636

@@ -102,7 +102,7 @@ Simulation Metadata
102102
Total surface equipment costs: 969.26 MUSD
103103
Exploration costs: 30.00 MUSD
104104
Investment Tax Credit: -459.83 MUSD
105-
Total capital costs: 1072.95 MUSD
105+
Total capital costs: 1532.78 MUSD
106106

107107

108108
***OPERATING AND MAINTENANCE COSTS (M$/yr)***
@@ -193,8 +193,8 @@ Year Electricity | Heat |
193193
Since Price Ann. Rev. Cumm. Rev. | Price Ann. Rev. Cumm. Rev. | Price Ann. Rev. Cumm. Rev. | Price Ann. Rev. Cumm. Rev. | OPEX Net Rev. Net Cashflow
194194
Start (cents/kWh)(MUSD/yr) (MUSD) |(cents/kWh) (MUSD/yr) (MUSD) |(cents/kWh) (MUSD/yr) (MUSD) |(USD/lb) (MUSD/yr) (MUSD) |(MUSD/yr) (MUSD/yr) (MUSD)
195195
________________________________________________________________________________________________________________________________________________________________________________________
196-
0 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 -1072.95 -1072.95
197-
1 15.00 474.16 474.16 | 2.50 0.00 0.00 | 2.50 0.00 0.00 | 0.00 0.00 0.00 | 26.96 447.20 -625.75
196+
0 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 -1532.78 -1532.78
197+
1 15.00 474.16 474.16 | 2.50 0.00 0.00 | 2.50 0.00 0.00 | 0.00 0.00 0.00 | 26.96 907.04 -625.75
198198
2 15.00 476.35 950.51 | 2.50 0.00 0.00 | 2.50 0.00 0.00 | 0.00 0.00 0.00 | 26.96 449.39 -176.36
199199
3 15.41 489.93 1440.44 | 2.50 0.00 0.00 | 2.50 0.00 0.00 | 0.00 0.00 0.00 | 26.96 462.97 286.61
200200
4 15.81 503.25 1943.69 | 2.50 0.00 0.00 | 2.50 0.00 0.00 | 0.00 0.00 0.00 | 26.96 476.29 762.90

‎tests/examples/example_ITC.out

Lines changed: 12 additions & 12 deletions
Original file line numberDiff line numberDiff line change
@@ -4,16 +4,16 @@
44

55
Simulation Metadata
66
----------------------
7-
GEOPHIRES Version: 3.8.4
8-
Simulation Date: 2025-03-19
9-
Simulation Time: 10:30
10-
Calculation Time: 0.808 sec
7+
GEOPHIRES Version: 3.8.9
8+
Simulation Date: 2025-04-02
9+
Simulation Time: 12:28
10+
Calculation Time: 0.783 sec
1111

1212
***SUMMARY OF RESULTS***
1313

1414
End-Use Option: Electricity
1515
Average Net Electricity Production: 18.84 MW
16-
Electricity breakeven price: 3.21 cents/kWh
16+
Electricity breakeven price: 4.44 cents/kWh
1717
Number of production wells: 2
1818
Number of injection wells: 2
1919
Flowrate per production well: 55.0 kg/sec
@@ -27,10 +27,10 @@ Simulation Metadata
2727
Accrued financing during construction: 0.00
2828
Project lifetime: 30 yr
2929
Capacity factor: 90.0 %
30-
Project NPV: 10.31 MUSD
31-
Project IRR: 8.82 %
32-
Project VIR=PI=PIR: 1.19
33-
Project MOIC: 0.72
30+
Project NPV: 6.77 MUSD
31+
Project IRR: 8.05 %
32+
Project VIR=PI=PIR: 1.06
33+
Project MOIC: 0.52
3434
Project Payback Period: 11.46 yr
3535
Estimated Jobs Created: 41
3636

@@ -99,7 +99,7 @@ Simulation Metadata
9999
Total surface equipment costs: 62.40 MUSD
100100
Exploration costs: 8.24 MUSD
101101
Investment Tax Credit: -54.20 MUSD
102-
Total capital costs: 54.20 MUSD
102+
Total capital costs: 108.39 MUSD
103103

104104

105105
***OPERATING AND MAINTENANCE COSTS (M$/yr)***
@@ -210,8 +210,8 @@ Year Electricity | Heat |
210210
Since Price Ann. Rev. Cumm. Rev. | Price Ann. Rev. Cumm. Rev. | Price Ann. Rev. Cumm. Rev. | Price Ann. Rev. Cumm. Rev. | OPEX Net Rev. Net Cashflow
211211
Start (cents/kWh)(MUSD/yr) (MUSD) |(cents/kWh) (MUSD/yr) (MUSD) |(cents/kWh) (MUSD/yr) (MUSD) |(USD/lb) (MUSD/yr) (MUSD) |(MUSD/yr) (MUSD/yr) (MUSD)
212212
________________________________________________________________________________________________________________________________________________________________________________________
213-
0 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 -54.20 -54.20
214-
1 5.50 8.02 8.02 | 2.50 0.00 0.00 | 2.50 0.00 0.00 | 0.00 0.00 0.00 | 2.95 5.07 -49.13
213+
0 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 0.00 0.00 | 0.00 -108.39 -108.39
214+
1 5.50 8.02 8.02 | 2.50 0.00 0.00 | 2.50 0.00 0.00 | 0.00 0.00 0.00 | 2.95 59.26 -49.13
215215
2 5.50 8.09 16.11 | 2.50 0.00 0.00 | 2.50 0.00 0.00 | 0.00 0.00 0.00 | 2.95 5.14 -43.99
216216
3 5.50 8.12 24.23 | 2.50 0.00 0.00 | 2.50 0.00 0.00 | 0.00 0.00 0.00 | 2.95 5.17 -38.82
217217
4 5.50 8.13 32.36 | 2.50 0.00 0.00 | 2.50 0.00 0.00 | 0.00 0.00 0.00 | 2.95 5.18 -33.64

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