Adjust royalty holder NPV for multiple construction years

Author: softwareengineerprogrammer

src/geophires_x/EconomicsSam.py

@@ -301,8 +301,11 @@ def sf(_v: float, num_sig_figs: int = 5) -> float:
         # Assumes that royalties opex is the only possible O&M production-based expense - this logic will need to be
         # updated if more O&M production-based expenses are added to SAM-EM
         sam_economics.royalties_opex.value = [
-            quantity(it, 'USD / year').to(sam_economics.royalties_opex.CurrentUnits).magnitude
-            for it in _cash_flow_profile_row(cash_flow, 'O&M production-based expense ($)')
+            *_pre_revenue_years_vector(model),
+            *[
+                quantity(it, 'USD / year').to(sam_economics.royalties_opex.CurrentUnits).magnitude
+                for it in _cash_flow_profile_row(cash_flow, 'O&M production-based expense ($)')
+            ],
         ]
 
     sam_economics.nominal_discount_rate.value, sam_economics.wacc.value = _calculate_nominal_discount_rate_and_wacc(
@@ -483,8 +486,7 @@ def _get_custom_gen_parameters(model: Model) -> dict[str, Any]:
 
 
 def _pre_revenue_years_count(model: Model) -> int:
-    # return model.surfaceplant.construction_years.value
-    return 0  # FIXME WIP (v3 impl)
+    return model.surfaceplant.construction_years.value
 
 
 def _pre_revenue_years_vector(model: Model, v: float = 0.0) -> list[float]:
@@ -504,7 +506,7 @@ def _get_utility_rate_parameters(m: Model) -> dict[str, Any]:
         (max_total_kWh_produced - it) / max_total_kWh_produced * 100 for it in m.surfaceplant.NetkWhProduced.value
     ]
 
-    ret['degradation'] = _pre_revenue_years_vector(m, v=100) + degradation_total
+    ret['degradation'] = degradation_total
 
     return ret
 

tests/test_geophires_x.py

@@ -1319,16 +1319,22 @@ def test_royalty_rate(self):
         zero_royalty_npv = None
         for royalty_rate in [0, 0.1]:
             with self.subTest(msg=f'royalty_rate={royalty_rate}'):
-                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,
-                        },
+
+                def _get_result(
+                    _royalty_rate: float, additional_params: dict[str, Any] | None = None
+                ) -> GeophiresXResult:
+                    if additional_params is None:
+                        additional_params = {}
+                    return 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, **additional_params},
+                        )
                     )
-                )
+
+                result = _get_result(royalty_rate)
                 opex_result = result.result['OPERATING AND MAINTENANCE COSTS (M$/yr)']
 
                 self.assertIsNotNone(opex_result[royalties_output_name])
@@ -1347,8 +1353,14 @@ def test_royalty_rate(self):
 
                 self.assertEqual(opex_line_item_sum, total_opex_MUSD)
 
-                econ_result = result.result['EXTENDED ECONOMICS']
-                royalty_holder_npv_MUSD = econ_result['Royalty Holder NPV']['value']
+                def _royalty_holder_npv_MUSD(r: GeophiresXResult) -> float:
+                    econ_result = r.result['EXTENDED ECONOMICS']
+                    return econ_result['Royalty Holder NPV']['value']
+
+                # econ_result = result.result['EXTENDED ECONOMICS']
+                royalty_holder_npv_MUSD = _royalty_holder_npv_MUSD(
+                    result
+                )  #  econ_result['Royalty Holder NPV']['value']
 
                 if royalty_rate > 0.0:
                     self.assertEqual(58.88, opex_result[royalties_output_name]['value'])
@@ -1369,7 +1381,14 @@ def test_royalty_rate(self):
                     )
 
                     if royalty_rate == 0.1:
-                        self.assertAlmostEqual(708.07, royalty_holder_npv_MUSD, places=2)
+                        base_expected_royalty_holder_npv_MUSD = 708.07
+                        self.assertAlmostEqual(base_expected_royalty_holder_npv_MUSD, royalty_holder_npv_MUSD, places=2)
+
+                        result_multiple_construction_years = _get_result(
+                            royalty_rate, additional_params={'Construction Years': 5}
+                        )
+                        mcy_royalty_npv = _royalty_holder_npv_MUSD(result_multiple_construction_years)
+                        self.assertLess(mcy_royalty_npv, base_expected_royalty_holder_npv_MUSD)
 
                 if royalty_rate == 0.0:
                     self.assertEqual(0, opex_result[royalties_output_name]['value'])