Discounting Approaches in Multi-Year Investment Modelling for Energy Systems
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arXiv
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| Hauptverfasser: | , |
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| Format: | Preprint |
| Veröffentlicht: |
2025
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| _version_ | 1866918005436317696 |
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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 |