Capital expenditures (CAPEX) are expenditures required to achieve commercial operation in a given year.
CAPEX can be determined for a plant in a specific geographic location as follows:
CAPEX = ConFinFactor*(OCC*CapRegMult+GCC).
(See the Financial Definitions tab in the ATB data spreadsheet.)
Regional cost variations and geographically specific grid connection costs are not included in the ATB (CapRegMult = 1; GCC = 0). In the ATB, the input value is overnight capital cost (OCC) and details to calculate interest during construction (ConFinFactor).
In the ATB, CAPEX is shown for four representative non-powered dam plants and four representative new stream-reach development plants. CAPEX estimates for all identified hydropower potential (~700 NPD and ~8,000 NSD) results in a CAPEX range that is much broader than that shown in the ATB. It is unlikely that all of the resource potential will be developed due to the very high costs for some sites. Regional cost effects and distance-based spur line costs are not estimated.
ATB CAPEX, O&M, and capacity factor assumptions for the Base Year and future projections through 2050 for High, Mid, and Low projections are used to develop the NREL Standard Scenarios using the ReEDS model. See ATB and Standard Scenarios.
CAPEX in ATB do not represent regional variants (CapRegMult) associated with labor rates, material costs, etc., and neither does ReEDS.
CAPEX in ATB do not include geographically determined spur line (GCC) from plant to transmission grid, and neither does ReEDS.
EIA (U.S. Energy Information Administration). 2016a. Capital Cost Estimates for Utility Scale Electricity Generating Plants. Washington, D.C.: U.S. Department of Energy. November 2016. https://www.eia.gov/analysis/studies/powerplants/capitalcost/pdf/capcost_assumption.pdf.
O'Connor, Patrick W., Qin Fen (Katherine) Zhang, Scott T. DeNeale, Dol Raj Chalise, and Emma Centurion. 2015. Hydropower Baseline Cost Modeling. Oak Ridge, TN: Oak Ridge National Laboratory. ORNL/TM-2015/14. January 2015. http://info.ornl.gov/sites/publications/files/Pub53978.pdf.