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ITC period fix #60

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30f8e11
fix comment typo 'capital' instead of 'capitol'
softwareengineerprogrammer Apr 1, 2025
55a52ba
Apply ITC credit as revenue after construction rather than deduction …
softwareengineerprogrammer Apr 2, 2025
03bd477
apply discount vector to ITC when calculating LCOE/H/C
softwareengineerprogrammer Apr 2, 2025
079bb6b
remove commented code
softwareengineerprogrammer Apr 2, 2025
ab97004
Fix LCOH calculation bug for Heat Pump + BICYCLE
softwareengineerprogrammer Apr 2, 2025
1467a88
update discount initial year cashflow test, since ITC period fix affe…
softwareengineerprogrammer Apr 2, 2025
47bea34
ITC tooltip link to https://programs.dsireusa.org/system/program/deta…
softwareengineerprogrammer Apr 3, 2025
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27 changes: 17 additions & 10 deletions src/geophires_x/Economics.py
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Original file line number Diff line number Diff line change
Expand Up @@ -479,7 +479,10 @@ def CalculateLCOELCOHLCOC(self, model: Model) -> tuple:
NPVcap = np.sum((1 + self.inflrateconstruction.value) * self.CCap.value * CRF * discountvector)
NPVfc = np.sum((1 + self.inflrateconstruction.value) * self.CCap.value * self.PTR.value * inflationvector * discountvector)
NPVit = np.sum(self.CTR.value / (1 - self.CTR.value) * ((1 + self.inflrateconstruction.value) * self.CCap.value * CRF - self.CCap.value / model.surfaceplant.plant_lifetime.value) * discountvector)
NPVitc = (1 + self.inflrateconstruction.value) * self.CCap.value * self.RITC.value / (1 - self.CTR.value)

npv_itc_discount_factor = discountvector[model.surfaceplant.construction_years.value]
NPVitc = ((1 + self.inflrateconstruction.value) * self.CCap.value * self.RITC.value / (1 - self.CTR.value)
* npv_itc_discount_factor)

if model.surfaceplant.enduse_option.value == EndUseOptions.ELECTRICITY:
NPVoandm = np.sum(self.Coam.value * inflationvector * discountvector)
Expand All @@ -502,7 +505,8 @@ def CalculateLCOELCOHLCOC(self, model: Model) -> tuple:
NPVcap_elec = np.sum((1 + self.inflrateconstruction.value) * CCap_elec * CRF * discountvector)
NPVfc_elec = np.sum((1 + self.inflrateconstruction.value) * CCap_elec * self.PTR.value * inflationvector * discountvector)
NPVit_elec = np.sum(self.CTR.value / (1 - self.CTR.value) * ((1 + self.inflrateconstruction.value) * CCap_elec * CRF - CCap_elec / model.surfaceplant.plant_lifetime.value) * discountvector)
NPVitc_elec = (1 + self.inflrateconstruction.value) * CCap_elec * self.RITC.value / (1 - self.CTR.value)
NPVitc_elec = ((1 + self.inflrateconstruction.value) * CCap_elec * self.RITC.value / (1 - self.CTR.value)
* npv_itc_discount_factor)
NPVoandm_elec = np.sum(Coam_elec * inflationvector * discountvector)
NPVgrt_elec = self.GTR.value / (1 - self.GTR.value) * (NPVcap_elec + NPVoandm_elec + NPVfc_elec + NPVit_elec - NPVitc_elec)

Expand All @@ -512,7 +516,8 @@ def CalculateLCOELCOHLCOC(self, model: Model) -> tuple:
NPVcap_heat = np.sum((1 + self.inflrateconstruction.value) * CCap_heat * CRF * discountvector)
NPVfc_heat = np.sum((1 + self.inflrateconstruction.value) * (self.CCap.value * (1.0 - self.CAPEX_heat_electricity_plant_ratio.value)) * self.PTR.value * inflationvector * discountvector)
NPVit_heat = np.sum(self.CTR.value / (1 - self.CTR.value) * ((1 + self.inflrateconstruction.value) * CCap_heat * CRF - CCap_heat / model.surfaceplant.plant_lifetime.value) * discountvector)
NPVitc_heat = (1 + self.inflrateconstruction.value) * CCap_heat * self.RITC.value / (1 - self.CTR.value)
NPVitc_heat = ((1 + self.inflrateconstruction.value) * CCap_heat * self.RITC.value / (1 - self.CTR.value)
* npv_itc_discount_factor)
NPVoandm_heat = np.sum((self.Coam.value * (1.0 - self.CAPEX_heat_electricity_plant_ratio.value)) * inflationvector * discountvector)
NPVgrt_heat = self.GTR.value / (1 - self.GTR.value) * (NPVcap_heat + NPVoandm_heat + NPVfc_heat + NPVit_heat - NPVitc_heat)

Expand All @@ -535,7 +540,7 @@ def CalculateLCOELCOHLCOC(self, model: Model) -> tuple:
NPVgrt = self.GTR.value / (1 - self.GTR.value) * (NPVcap + NPVoandm + NPVfc + NPVit - NPVitc)
LCOH = (NPVcap + NPVoandm + NPVfc + NPVit + NPVgrt - NPVitc) / np.sum(
model.surfaceplant.HeatkWhProduced.value * inflationvector * discountvector) * 1E8
LCOH = self.LCOH.value * 2.931 # $/MMBTU
LCOH = LCOH * 2.931 # $/MMBTU

elif model.surfaceplant.enduse_option.value == EndUseOptions.HEAT and model.surfaceplant.plant_type.value == PlantType.DISTRICT_HEATING:
PumpingCosts = model.surfaceplant.PumpingkWh.value * model.surfaceplant.electricity_cost_to_buy.value / 1E6
Expand Down Expand Up @@ -974,7 +979,8 @@ def __init__(self, model: Model):
PreferredUnits=PercentUnit.TENTH,
CurrentUnits=PercentUnit.TENTH,
ErrMessage="assume default investment tax credit rate (0)",
ToolTipText="Investment tax credit rate (see docs)"
ToolTipText="Investment tax credit rate "
"(see https://programs.dsireusa.org/system/program/detail/658)"
)
self.PTR = self.ParameterDict[self.PTR.Name] = floatParameter(
"Property Tax Rate",
Expand Down Expand Up @@ -2687,11 +2693,6 @@ def Calculate(self, model: Model) -> None:
else:
self.CCap.value = self.totalcapcost.value

# update the capitol costs, assuming the entire ITC is used to reduce the capitol costs
if self.RITC.Provided:
self.RITCValue.value = self.RITC.value * self.CCap.value
self.CCap.value = self.CCap.value - self.RITCValue.value

# Add in the FlatLicenseEtc, OtherIncentives, & TotalGrant
self.CCap.value = self.CCap.value + self.FlatLicenseEtc.value - self.OtherIncentives.value - self.TotalGrant.value

Expand Down Expand Up @@ -2928,6 +2929,12 @@ def Calculate(self, model: Model) -> None:
model.surfaceplant.plant_lifetime.value + model.surfaceplant.construction_years.value, 1):
self.TotalRevenue.value[i] = self.TotalRevenue.value[i] - self.Coam.value


if self.RITC.Provided:
self.RITCValue.value = self.RITC.value * self.CCap.value
# ITC is credited year after construction
self.TotalRevenue.value[model.surfaceplant.construction_years.value] += self.RITCValue.value

# Now do a one-time calculation that calculates the cumulative cash flow after everything else has been accounted for
for i in range(1, model.surfaceplant.plant_lifetime.value + model.surfaceplant.construction_years.value, 1):
self.TotalCummRevenue.value[i] = self.TotalCummRevenue.value[i-1] + self.TotalRevenue.value[i]
Expand Down
2 changes: 1 addition & 1 deletion src/geophires_x_schema_generator/geophires-request.json
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Original file line number Diff line number Diff line change
Expand Up @@ -1644,7 +1644,7 @@
"maximum": 1.0
},
"Investment Tax Credit Rate": {
"description": "Investment tax credit rate (see docs)",
"description": "Investment tax credit rate (see https://programs.dsireusa.org/system/program/detail/658)",
"type": "number",
"units": "",
"category": "Economics",
Expand Down
24 changes: 12 additions & 12 deletions tests/examples/Fervo_Project_Cape-3.out
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Original file line number Diff line number Diff line change
Expand Up @@ -4,16 +4,16 @@

Simulation Metadata
----------------------
GEOPHIRES Version: 3.7.23
Simulation Date: 2025-03-10
Simulation Time: 10:42
Calculation Time: 0.871 sec
GEOPHIRES Version: 3.8.9
Simulation Date: 2025-04-02
Simulation Time: 12:41
Calculation Time: 0.860 sec

***SUMMARY OF RESULTS***

End-Use Option: Electricity
Average Net Electricity Production: 404.31 MW
Electricity breakeven price: 2.77 cents/kWh
Electricity breakeven price: 3.76 cents/kWh
Number of production wells: 39
Number of injection wells: 39
Flowrate per production well: 120.0 kg/sec
Expand All @@ -27,10 +27,10 @@ Simulation Metadata
Accrued financing during construction: 5.00
Project lifetime: 20 yr
Capacity factor: 90.0 %
Project NPV: 4580.36 MUSD
Project IRR: 43.75 %
Project VIR=PI=PIR: 5.27
Project MOIC: 6.30
Project NPV: 4550.28 MUSD
Project IRR: 39.26 %
Project VIR=PI=PIR: 3.97
Project MOIC: 4.91
Project Payback Period: 3.38 yr
Estimated Jobs Created: 976

Expand Down Expand Up @@ -102,7 +102,7 @@ Simulation Metadata
Total surface equipment costs: 969.26 MUSD
Exploration costs: 30.00 MUSD
Investment Tax Credit: -459.83 MUSD
Total capital costs: 1072.95 MUSD
Total capital costs: 1532.78 MUSD


***OPERATING AND MAINTENANCE COSTS (M$/yr)***
Expand Down Expand Up @@ -193,8 +193,8 @@ Year Electricity | Heat |
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
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)
________________________________________________________________________________________________________________________________________________________________________________________
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
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
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
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
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
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
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
Expand Down
24 changes: 12 additions & 12 deletions tests/examples/example_ITC.out
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Original file line number Diff line number Diff line change
Expand Up @@ -4,16 +4,16 @@

Simulation Metadata
----------------------
GEOPHIRES Version: 3.8.4
Simulation Date: 2025-03-19
Simulation Time: 10:30
Calculation Time: 0.808 sec
GEOPHIRES Version: 3.8.9
Simulation Date: 2025-04-02
Simulation Time: 12:41
Calculation Time: 0.777 sec

***SUMMARY OF RESULTS***

End-Use Option: Electricity
Average Net Electricity Production: 18.84 MW
Electricity breakeven price: 3.21 cents/kWh
Electricity breakeven price: 4.89 cents/kWh
Number of production wells: 2
Number of injection wells: 2
Flowrate per production well: 55.0 kg/sec
Expand All @@ -27,10 +27,10 @@ Simulation Metadata
Accrued financing during construction: 0.00
Project lifetime: 30 yr
Capacity factor: 90.0 %
Project NPV: 10.31 MUSD
Project IRR: 8.82 %
Project VIR=PI=PIR: 1.19
Project MOIC: 0.72
Project NPV: 6.77 MUSD
Project IRR: 8.05 %
Project VIR=PI=PIR: 1.06
Project MOIC: 0.52
Project Payback Period: 11.46 yr
Estimated Jobs Created: 41

Expand Down Expand Up @@ -99,7 +99,7 @@ Simulation Metadata
Total surface equipment costs: 62.40 MUSD
Exploration costs: 8.24 MUSD
Investment Tax Credit: -54.20 MUSD
Total capital costs: 54.20 MUSD
Total capital costs: 108.39 MUSD


***OPERATING AND MAINTENANCE COSTS (M$/yr)***
Expand Down Expand Up @@ -210,8 +210,8 @@ Year Electricity | Heat |
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
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)
________________________________________________________________________________________________________________________________________________________________________________________
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
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
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
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
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
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
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
Expand Down
17 changes: 15 additions & 2 deletions tests/test_geophires_x.py
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Expand Up @@ -610,8 +610,8 @@ def _get_result(base_example: str, do_discount: bool) -> GeophiresXResult:
def _npv(r: GeophiresXResult) -> dict:
return r.result['ECONOMIC PARAMETERS']['Project NPV']['value']

self.assertEqual(4580.36, _npv(_get_result('Fervo_Project_Cape-3', False)))
self.assertEqual(4280.71, _npv(_get_result('Fervo_Project_Cape-3', True)))
self.assertEqual(4550.28, _npv(_get_result('Fervo_Project_Cape-3', False)))
self.assertEqual(4252.6, _npv(_get_result('Fervo_Project_Cape-3', True)))

def _extended_economics_npv(r: GeophiresXResult) -> dict:
return r.result['EXTENDED ECONOMICS']['Project NPV (including AddOns)']['value']
Expand Down Expand Up @@ -854,3 +854,16 @@ def test_field_gathering_cost(self):
)

self.assertEqual(fg_cost, result.result['CAPITAL COSTS (M$)']['Field gathering system costs']['value'])

def test_heat_pump_lcoh_bicycle(self):
result = GeophiresXClient().get_geophires_result(
GeophiresInputParameters(
from_file_path=self._get_test_file_path('examples/example10_HP.txt'),
params={
'Economic Model': 3,
},
)
)

lcoh = result.result['SUMMARY OF RESULTS']['Direct-Use heat breakeven price (LCOH)']['value']
self.assertTrue(10 < lcoh < 20) # Sanity-check that value is non-zero and broadly within the expected range.
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