Why do values/parameters cannot be changed

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jopao
Topic Author

13 Mar 2022 06:19 #10665 by jopao

Why do values/parameters cannot be changed was created by jopao

Hello Good day!

I am writing this to discuss why some of the parameters of the software are fixed and cannot be changed? Specifically the reference values in the financial parameters such as capital recovery factor, project financing factor and construction financing factor. How did these values get computed? Thank you

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pgilman

14 Mar 2022 12:39 #10673 by pgilman

Replied by pgilman on topic Why do values/parameters cannot be changed

Hi Jose,

I think you are asking about the inputs on the Financial Parameters page listed under "Reference Values" for the LCOE Calculator (FCR Method) financial model.

SAM calculates those values based on the inputs that you provide. You can find the equations for those calculations in Help, by clicking the Help button, or pressing the F1 key (Command-? on a Mac).

Best regards,
Paul.

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jopao
Topic Author

15 Mar 2022 01:37 #10687 by jopao

Replied by jopao on topic Why do values/parameters cannot be changed

Hi Paul,

Thank you for the reply. By any chance can I get the methodology for these equations? Thank you

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pgilman

15 Mar 2022 16:13 #10689 by pgilman

Replied by pgilman on topic Why do values/parameters cannot be changed

Hi Jose,

The equations for SAM's fixed-charge-rate (FCR) method of calculating the LCOE are described in detail in the "LCOE Calculator" topic of Help (listed under Financial Parameters in Help's table of contents). That topic also mentions two references that describe the methodology and provide an example of its application. Quoted from Help:

For details, see pp. 22-24 of Short W et al, 1995. Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies. National Renewable Energy Laboratory. NREL/TP-462-5173. ( PDF 6.6 MB)

This method is an alternative to the cash flow method used by SAM's other financial models. It is appropriate for very preliminary stages of project feasibility analysis before you have many details about the project's costs and financial structure. It also useful for large-scale studies of market trends, such as those used for the NREL Annual Technology Baseline (ATB) study.

Best regards,
Paul.

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ecooper

14 Feb 2023 23:29 #11928 by ecooper

Replied by ecooper on topic Why do values/parameters cannot be changed

Hi Paul,

I noticed that my own calculations of CRF using the formula from pp. 25 of the Short manual with a nominal debt interest rate yield different results from what is generated in the "Reference Values" section of the "Financial Parameters" tab. I'm wondering if I should be using a different quantity as my rate - perhaps a real interest rate? Or a discounted one? Could you please tell me what rate is used by SAM in the CRF formula and how that rate is calculated from inputs in the "Financial Assumptions" section?

Thanks,
Emma

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pgilman

14 Feb 2023 23:35 #11929 by pgilman

Replied by pgilman on topic Why do values/parameters cannot be changed

Hi Emma,

The equations for the values under "Reference Values" on the Financial Parameters page for the LCOE Calculator financial model are described in Help (in SAM, click Help or press the F1 key): samrepo.nrelcloud.org/help/fin_lcoefcr.htm.

Best regards,
Paul.

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