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Main Authors: Wang, Ni, Tejada-Arango, Diego A.
Format: Preprint
Published: 2025
Subjects:
Online Access:https://arxiv.org/abs/2504.21709
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author Wang, Ni
Tejada-Arango, Diego A.
author_facet Wang, Ni
Tejada-Arango, Diego A.
contents This paper reviews discounting approaches for modeling multi-year energy investments, focusing on total versus annualised cost formulations. We discuss how time value of money is handled, and how salvage value and milestone-year weighting can address mismatches between asset lifetimes and model horizons. These methods are implemented in the open-source TulipaEnergyModel to support transparent and tractable long-term energy system planning.
format Preprint
id arxiv_https___arxiv_org_abs_2504_21709
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Discounting Approaches in Multi-Year Investment Modelling for Energy Systems
Wang, Ni
Tejada-Arango, Diego A.
Optimization and Control
This paper reviews discounting approaches for modeling multi-year energy investments, focusing on total versus annualised cost formulations. We discuss how time value of money is handled, and how salvage value and milestone-year weighting can address mismatches between asset lifetimes and model horizons. These methods are implemented in the open-source TulipaEnergyModel to support transparent and tractable long-term energy system planning.
title Discounting Approaches in Multi-Year Investment Modelling for Energy Systems
topic Optimization and Control
url https://arxiv.org/abs/2504.21709