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:
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 represents a typical one-axis utility-scale PV plant and does not vary with resource. The difference in cost between tracking and non-tracking systems has been reduced greatly in the United States. Regional cost effects associated with labor rates, material costs, and other regional effects as defined by EIA (2016b) expand the range of CAPEX. Unique land-based spur line costs based on distance and transmission line costs for potential utility-PV plant locations expand the range of CAPEX even further. The following figure illustrates the ATB representative plant relative to the range of CAPEX including regional costs across the contiguous United States. The ATB representative plants are associated with a regional multiplier of 1.0.
ATB CAPEX, O&M, and capacity factor assumptions for the Base Year and future projections through 2050 for Constant, Mid, and Low technology cost scenarios are used to develop the NREL Standard Scenarios using the ReEDS model. See ATB and Standard Scenarios.
CAPEX in the ATB does not include a geographically determined spur line (GCC) from plant to transmission grid, but the ReEDS model calculates a unique value for each potential PV plant.
EIA. (2016a). Annual Energy Outlook 2016 Early Release: Annotated Summary of Two Cases (No. AEO2016). Retrieved from U.S. Energy Information Administration website: https://www.eia.gov/outlooks/aeo/er/pdf/0383er(2016).pdf
EIA. (2016b). Capital Cost Estimates for Utility Scale Electricity Generating Plants. Retrieved from U.S. Energy Information Administration website: https://www.eia.gov/analysis/studies/powerplants/capitalcost/pdf/capcost_assumption.pdf