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ITC period fix [v3.8.11] #61

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2f3e4ab
Apply ITC credit as revenue after construction rather than deduction …
softwareengineerprogrammer Apr 2, 2025
a9f9d80
apply discount vector to ITC when calculating LCOE/H/C
softwareengineerprogrammer Apr 2, 2025
8ec9251
remove commented code
softwareengineerprogrammer Apr 2, 2025
98f5e32
update discount initial year cashflow test, since ITC period fix affe…
softwareengineerprogrammer Apr 2, 2025
eb86f20
ITC tooltip link to https://programs.dsireusa.org/system/program/deta…
softwareengineerprogrammer Apr 3, 2025
4838038
Bump version: 3.8.10 → 3.8.11
softwareengineerprogrammer Apr 3, 2025
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2 changes: 1 addition & 1 deletion .bumpversion.cfg
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@@ -1,5 +1,5 @@
[bumpversion]
current_version = 3.8.10
current_version = 3.8.11
commit = True
tag = True

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2 changes: 1 addition & 1 deletion .cookiecutterrc
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Expand Up @@ -54,7 +54,7 @@ default_context:
sphinx_doctest: "no"
sphinx_theme: "sphinx-py3doc-enhanced-theme"
test_matrix_separate_coverage: "no"
version: 3.8.10
version: 3.8.11
version_manager: "bump2version"
website: "https://github.com/NREL"
year_from: "2023"
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4 changes: 2 additions & 2 deletions README.rst
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Expand Up @@ -56,9 +56,9 @@ Free software: `MIT license <LICENSE>`__
:alt: Supported implementations
:target: https://pypi.org/project/geophires-x

.. |commits-since| image:: https://img.shields.io/github/commits-since/softwareengineerprogrammer/GEOPHIRES-X/v3.8.10.svg
.. |commits-since| image:: https://img.shields.io/github/commits-since/softwareengineerprogrammer/GEOPHIRES-X/v3.8.11.svg
:alt: Commits since latest release
:target: https://github.com/softwareengineerprogrammer/GEOPHIRES-X/compare/v3.8.10...main
:target: https://github.com/softwareengineerprogrammer/GEOPHIRES-X/compare/v3.8.11...main

.. |docs| image:: https://readthedocs.org/projects/GEOPHIRES-X/badge/?style=flat
:target: https://nrel.github.io/GEOPHIRES-X
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2 changes: 1 addition & 1 deletion docs/conf.py
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Expand Up @@ -18,7 +18,7 @@
year = '2025'
author = 'NREL'
copyright = f'{year}, {author}'
version = release = '3.8.10'
version = release = '3.8.11'

pygments_style = 'trac'
templates_path = ['./templates']
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2 changes: 1 addition & 1 deletion setup.py
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Expand Up @@ -13,7 +13,7 @@ def read(*names, **kwargs):

setup(
name='geophires-x',
version='3.8.10',
version='3.8.11',
license='MIT',
description='GEOPHIRES is a free and open-source geothermal techno-economic simulator.',
long_description='{}\n{}'.format(
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25 changes: 16 additions & 9 deletions src/geophires_x/Economics.py
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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 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 capital costs, assuming the entire ITC is used to reduce the capital 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]
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2 changes: 1 addition & 1 deletion src/geophires_x/__init__.py
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@@ -1 +1 @@
__version__ = '3.8.10'
__version__ = '3.8.11'
2 changes: 1 addition & 1 deletion src/geophires_x_schema_generator/geophires-request.json
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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)",
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@softwareengineerprogrammer softwareengineerprogrammer Apr 3, 2025 •
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Note: I would ideally have preferred this to be to a .gov site but:

  1. The original quasi-canonical government page seems to have been removed and now redirects to the DOE homepage: https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses
  2. Existing .gov sites including https://www.energy.gov/sites/prod/files/2016/12/f34/Leveraging_Federal_Renewable_Energy_Tax_Credits_Final.pdf and https://www.epa.gov/sites/default/files/2018-08/documents/guide-purchasing-green-power-7.pdf point to https://programs.dsireusa.org/system/program/detail/658 so it appears to have some level of blessing as an official source of information
  3. The DSIRE page links to relevant .gov pages as authorities: image
  4. ITC-specific .gov pages such as https://www.irs.gov/pub/irs-pdf/i3468.pdf are focused on specific tax form instructions which are an inappropriate/inaccessible level of detail in the context of GEOPHIRES documentation

(Also note the previous tooltip text erroneously instructed "see docs" when ITC is not discussed any existing documentation)

"type": "number",
"units": "",
"category": "Economics",
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24 changes: 12 additions & 12 deletions tests/examples/Fervo_Project_Cape-3.out
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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
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24 changes: 12 additions & 12 deletions tests/examples/example_ITC.out
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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
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4 changes: 2 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