Include royalties in opex output/total opex (WIP)

Author: softwareengineerprogrammer

src/geophires_x/Economics.py

@@ -13,7 +13,7 @@
 from geophires_x.EconomicsUtils import BuildPricingModel, wacc_output_parameter, nominal_discount_rate_parameter, \
     real_discount_rate_parameter, after_tax_irr_parameter, moic_parameter, project_vir_parameter, \
     project_payback_period_parameter, inflation_cost_during_construction_output_parameter, \
-    total_capex_parameter_output_parameter
+    total_capex_parameter_output_parameter, royalties_opex_parameter_output_parameter
 from geophires_x.GeoPHIRESUtils import quantity
 from geophires_x.OptionList import Configuration, WellDrillingCostCorrelation, EconomicModel, EndUseOptions, PlantType, \
     _WellDrillingCostCorrelationCitation
@@ -1906,6 +1906,7 @@ def __init__(self, model: Model):
             PreferredUnits=CurrencyFrequencyUnit.MDOLLARSPERYEAR,
             CurrentUnits=CurrencyFrequencyUnit.MDOLLARSPERYEAR
         )
+        self.royalties_opex = self.OutputParameterDict[self.royalties_opex.Name] = royalties_opex_parameter_output_parameter()
 
         # district heating
         self.peakingboilercost = self.OutputParameterDict[self.peakingboilercost.Name] = OutputParameter(
@@ -2502,10 +2503,17 @@ def Calculate(self, model: Model) -> None:
             # Setting capex_total distinguishes capex from CCap's display name of 'Total capital costs',
             # since SAM Economic Model doesn't subtract ITC from this value.
             self.capex_total.value = (self.sam_economics_calculations.capex.quantity()
-                                .to(self.capex_total.CurrentUnits.value).magnitude)
+                               .to(self.capex_total.CurrentUnits.value).magnitude)
             self.CCap.value = (self.sam_economics_calculations.capex.quantity()
                                .to(self.CCap.CurrentUnits.value).magnitude)
 
+            # FIXME WIP adjust OPEX for royalties
+            # FIXME WIP unit conversion
+            average_annual_royalties = np.average(self.sam_economics_calculations.royalties_opex[1:])  # ignore Year 0
+            if average_annual_royalties > 0:
+                self.royalties_opex.value = average_annual_royalties
+                self.Coam.value += self.royalties_opex.quantity().to(self.Coam.CurrentUnits.value).magnitude
+
             self.wacc.value = self.sam_economics_calculations.wacc.value
             self.nominal_discount_rate.value = self.sam_economics_calculations.nominal_discount_rate.value
             self.ProjectNPV.value = self.sam_economics_calculations.project_npv.quantity().to(

src/geophires_x/EconomicsSam.py

@@ -39,11 +39,12 @@
     project_payback_period_parameter,
     inflation_cost_during_construction_output_parameter,
     total_capex_parameter_output_parameter,
+    royalties_opex_parameter_output_parameter,
 )
 from geophires_x.GeoPHIRESUtils import is_float, is_int, sig_figs, quantity
 from geophires_x.OptionList import EconomicModel, EndUseOptions
 from geophires_x.Parameter import Parameter, OutputParameter, floatParameter
-from geophires_x.Units import convertible_unit, EnergyCostUnit, CurrencyUnit, Units
+from geophires_x.Units import convertible_unit, EnergyCostUnit, CurrencyUnit, Units, CurrencyFrequencyUnit
 
 
 @dataclass
@@ -59,6 +60,8 @@ class SamEconomicsCalculations:
 
     capex: OutputParameter = field(default_factory=total_capex_parameter_output_parameter)
 
+    royalties_opex: OutputParameter = field(default_factory=royalties_opex_parameter_output_parameter)
+
     project_npv: OutputParameter = field(
         default_factory=lambda: OutputParameter(
             UnitType=Units.CURRENCY,
@@ -170,6 +173,13 @@ def sf(_v: float, num_sig_figs: int = 5) -> float:
     sam_economics.project_npv.value = sf(single_owner.Outputs.project_return_aftertax_npv * 1e-6)
     sam_economics.capex.value = single_owner.Outputs.adjusted_installed_cost * 1e-6
 
+    royalty_rate = model.economics.royalty_rate.quantity().to('dimensionless').magnitude
+    ppa_revenue_row = _cash_flow_profile_row(cash_flow, 'PPA revenue ($)')
+    royalties_unit = sam_economics.royalties_opex.CurrentUnits.value.replace('/yr', '')
+    sam_economics.royalties_opex = [
+        quantity(x * royalty_rate, 'USD').to(royalties_unit).magnitude for x in ppa_revenue_row
+    ]
+
     sam_economics.nominal_discount_rate.value, sam_economics.wacc.value = _calculate_nominal_discount_rate_and_wacc(
         model, single_owner
     )

src/geophires_x/EconomicsUtils.py

@@ -1,7 +1,7 @@
 from __future__ import annotations
 
 from geophires_x.Parameter import OutputParameter
-from geophires_x.Units import Units, PercentUnit, TimeUnit, CurrencyUnit
+from geophires_x.Units import Units, PercentUnit, TimeUnit, CurrencyUnit, CurrencyFrequencyUnit
 
 
 def BuildPricingModel(plantlifetime: int, StartPrice: float, EndPrice: float,
@@ -144,3 +144,13 @@ def total_capex_parameter_output_parameter() -> OutputParameter:
                     'For SAM Economic models, it also includes any cost escalation from inflation during construction. '
                     'It is used as the total installed cost input for SAM Economic Models.'
     )
+
+
+def royalties_opex_parameter_output_parameter() -> OutputParameter:
+    return OutputParameter(
+            Name='Royalties',
+            UnitType=Units.CURRENCYFREQUENCY,
+            PreferredUnits=CurrencyFrequencyUnit.MDOLLARSPERYEAR,
+            CurrentUnits=CurrencyFrequencyUnit.MDOLLARSPERYEAR,
+            ToolTipText='Average annual royalties'  # TODO WIP clarify
+        )

src/geophires_x/Outputs.py

@@ -555,6 +555,10 @@ def PrintOutputs(self, model: Model):
                         aoc_label = Outputs._field_label(model.addeconomics.AddOnOPEXTotalPerYear.display_name, 47)
                         f.write(f'         {aoc_label}{model.addeconomics.AddOnOPEXTotalPerYear.value:10.2f} {model.addeconomics.AddOnOPEXTotalPerYear.CurrentUnits.value}\n')
 
+                    if econ.royalty_rate.value > 0.0:
+                        royalties_label = Outputs._field_label(econ.royalties_opex.display_name, 47)
+                        f.write(f'         {royalties_label}{econ.royalties_opex.value:10.2f} {econ.royalties_opex.CurrentUnits.value}\n')
+
                     f.write(f'      {econ.Coam.display_name}:            {(econ.Coam.value + econ.averageannualpumpingcosts.value + econ.averageannualheatpumpelectricitycost.value):10.2f} {econ.Coam.CurrentUnits.value}\n')
                 else:
                     f.write(f'      {econ.Coam.display_name}:            {econ.Coam.value:10.2f} {econ.Coam.CurrentUnits.value}\n')

src/geophires_x_client/geophires_x_result.py

@@ -290,6 +290,7 @@ class GeophiresXResult:
                 'Annual District Heating O&M Cost',
                 'Average Annual Peaking Fuel Cost',
                 'Average annual pumping costs',
+                'Royalties',
                 # SUTRA
                 'Average annual auxiliary fuel cost',
                 'Average annual pumping cost',

tests/geophires_x_tests/test_economics_sam.py

@@ -20,6 +20,7 @@
     get_sam_cash_flow_profile_tabulated_output,
     _ppa_pricing_model,
     _get_fed_and_state_tax_rates,
+    SamEconomicsCalculations,
 )
 from geophires_x.GeoPHIRESUtils import sig_figs, quantity
 
@@ -644,7 +645,7 @@ def test_royalty_rate(self):
             self._egs_test_file_path(), additional_params={'Royalty Rate': royalty_rate}
         )
 
-        sam_econ = calculate_sam_economics(m)
+        sam_econ: SamEconomicsCalculations = calculate_sam_economics(m)
         cash_flow = sam_econ.sam_cash_flow_profile
 
         def get_row(name: str):
@@ -653,8 +654,12 @@ def get_row(name: str):
         ppa_revenue_row = get_row('PPA revenue ($)')
         expected_royalties = [x * royalty_rate for x in ppa_revenue_row]
 
+        self.assertListEqual(expected_royalties, sam_econ.royalties_opex)
+
         om_prod_based_expense_row = get_row('O&M production-based expense ($)')
         self.assertListAlmostEqual(expected_royalties, om_prod_based_expense_row, places=0)
+        # Note the above assertion assumes royalties are the only production-based O&M expenses. If this changes,
+        # the assertion will need to be updated.
 
     @staticmethod
     def _new_model(input_file: Path, additional_params: dict[str, Any] | None = None, read_and_calculate=True) -> Model:

tests/test_geophires_x.py

@@ -1294,3 +1294,24 @@ def test_redrilling_costs(self):
             ) / result.result['ECONOMIC PARAMETERS']['Project lifetime']['value']
 
             self.assertAlmostEqual(expected_annual_redrilling_cost, result_opex['Redrilling costs']['value'], places=2)
+
+    def test_royalty_rate(self):
+        royalties_output_name = 'Royalties'
+
+        for royalty_rate in [0, 0.1]:
+            result = GeophiresXClient().get_geophires_result(
+                ImmutableGeophiresInputParameters(
+                    from_file_path=self._get_test_file_path(
+                        'geophires_x_tests/generic-egs-case-2_sam-single-owner-ppa.txt'
+                    ),
+                    params={'Royalty Rate': royalty_rate},
+                )
+            )
+            opex_result = result.result['OPERATING AND MAINTENANCE COSTS (M$/yr)']
+            if royalty_rate > 0.0:
+                self.assertIsNotNone(opex_result[royalties_output_name])
+                self.assertEqual(58.88, opex_result[royalties_output_name]['value'])
+                self.assertEqual('MUSD/yr', opex_result[royalties_output_name]['unit'])
+                # FIXME WIP assert total opex includes royalties
+            else:
+                self.assertIsNone(opex_result[royalties_output_name])