Discounting

[willu47]

The discounting approach in OSeMOSYS is rather simple.

One improvement could be to include annualised investment costs in the objective function, allowing hurdle rates to be used.

[willu47]

@robertodawid - any update on your investigation into discounting in OSeMOSYS?

[TomAlfstad]

I think I raised this issue elsewhere some time ago without realizing that this had been partially addressed after we forked our code from the standard code. The current Osemosys code uses a shortcut implementation where the objective function implicitly uses the present value of a series of annualized payment rather than a single year value without actually calculating the annualized costs. This allows for technology specific hurdle rates to be used. However, I think it would be helpful to also report these as an output variable. For the UI implementation we would likely do this as a post processing step to avoid bloating the code/matrix.