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2 changes: 1 addition & 1 deletion docs/main/cost-dashboard.md
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Expand Up @@ -29,7 +29,7 @@ This page explains the six main groups that comprise the total annual costs disp

4. **Storage and conversion:** Installation-related costs (CAPEX + OPEX). All G2P is associated with means of 'Energy production'. Subgroups:
- Power-to-power (p2p)
- Power-to-gas (p2g), onshore and offshore
- Electrolysis from grid on land
- Power-to-heat (p2h)
- Storage (of hydrogen and heat)

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40 changes: 20 additions & 20 deletions docs/main/cost-methods.md
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Expand Up @@ -5,50 +5,50 @@ title: Cost methods
The ETM defines six main cost groups, consisting of various subgroups. These subgroups are the sum of individual technologies and some additional modules. A detailed breakdown of all groups, subgroups and modules and can be found in the [data export](https://energytransitionmodel.com/scenario/data/data_export/specifications-annual-costs). A detailed overview of the scope per subgroup can be found in the [Overview of costs per sector](cost-overview-per-sector.md).

## Main cost groups
The yearly costs of a scenario in the ETM is built up from all technologies, carriers, and CO<sub>2</sub> costs in a scenario. **Important:** Group 1-4 consists of the CAPEX and OPEX and exclude fuels and CCUS costs. Group 5 includes all the fuel costs and group 6 all the CCUS and CO<sub>2</sub> costs.
The yearly costs of a scenario in the ETM is built up from all technologies, carriers, and CO<sub>2</sub> costs in a scenario. **Important:** Group 1-4 consists of the CAPEX and OPEX and exclude fuels and CCUS costs. Group 5 includes all the fuel costs and group 6 all the CCUS and CO<sub>2</sub> costs.

1. **Buildings and installations:** Building and installation-related costs (CAPEX + OPEX) of sectors. Subgroups:
- Households
- Buildings
- Transport
- Industry
- Agriculture
- Households
- Buildings
- Transport
- Industry
- Agriculture

2. **Energy Production:** Installation-related costs (CAPEX + OPEX) of the energy production sector. Subgroups:
2. **Energy Production:** Installation-related costs (CAPEX + OPEX) of the energy production sector. Subgroups:
- Power plants
- CHP plants (including the industrial steam network)
- Heat plants
- Dedicated hydrogen production
- Heat plants
- Dedicated hydrogen production
- Biomass treatment
- Other intallations (synthetic kerosine, regasification of lng, and energy compressors for network gas)

3. **Infrastructure**: CAPEX + OPEX of the energy infrastructure. Subgroups:
- Natural gas (includes gas network for natural gas and green gas and import infrastructure costs of LNG)
- Natural gas (includes gas network for natural gas and green gas and import infrastructure costs of LNG)
- Heat (network costs)
- Hydrogen carriers (includes hydrogen network and import infrastructure costs of liquid hydrogen and LOHC)
- Electricity (network costs)
- Ammonia (import infrastructure costs of ammonia)
- Oil (import infrastructure costs of diesel)

4. **Storage and conversion:** Installation-related costs (CAPEX + OPEX). All G2P is associated with means of 'Energy production'. Subgroups:
- Power-to-power (p2p)
- Power-to-gas (p2g)
- Electrolysis from grid on land
- Power-to-heat (p2h)
- Storage (of hydrogen and heat)
- Storage (of hydrogen and heat)

5. **Energy carriers and import:** All net primary demand of energy carriers.

5. **Energy carriers and import:** All net primary demand of energy carriers.
<i>Cost of carrier = (extraction + import - export) * price of carrier</i>

<i>Cost of carrier = (extraction + import - export) * price of carrier</i>
For export the ETM charges the costs of the primary carrier that is needed for that export. The export of electricity and transit of oil is cost neutral and independent of the market price. A country does not "earn" money from processing oil. And for electricity the ETM deducts the costs of the primary carriers needed to produce that electricity.

For export the ETM charges the costs of the primary carrier that is needed for that export. The export of electricity and transit of oil is cost neutral and independent of the market price. A country does not "earn" money from processing oil. And for electricity the ETM deducts the costs of the primary carriers needed to produce that electricity.

6. **Carbon capture, utilisation and storage (CCUS):** CAPEX + OPEX of all CCUS technologies, including CO<sub>2</sub> costs.

## CAPEX and OPEX
## CAPEX and OPEX
All costs of groups 1-4 consists of two variables: CAPEX or `capital_expenditures_excluding_ccs` and OPEX or `operating_expenses_excluding_ccs`. Group 6 is similar, but contains all CAPEX and OPEX of the CCUS technologies.

### **CAPEX**
Capital expenditures are major investments that are designed to be used for many years. The yearly costs for these investments are based on the total investment over lifetime, WACC and plant lifetime. CCUS and fuel costs are not in the CAPEX and OPEX of group 1-4.
Capital expenditures are major investments that are designed to be used for many years. The yearly costs for these investments are based on the total investment over lifetime, WACC and plant lifetime. CCUS and fuel costs are not in the CAPEX and OPEX of group 1-4.

![](/img/docs/costs_equation_capex.png)

Expand All @@ -61,7 +61,7 @@ Additional definitions:

### **OPEX**
Operating expenses include Operation and Maintenance (O&M) costs, without CCS. O&M costs can have both a variable and a fixed part.

* Variable O&M costs are costs that depend on the number of full load hours of the plant, for additional cleaning and service costs. Note that this excludes [fuel costs](cost-methods.md#fuel-costs), since these are allocated to an individual category.
* The fixed part are the costs that are made yearly, independent of whether the plant is used or not. Fixed O&M Costs are specified per year and found directly from research. This means that Fixed O&M Costs have no calculations associated with them.

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2 changes: 1 addition & 1 deletion docs/main/cost-overview-per-sector.md
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Expand Up @@ -47,7 +47,7 @@ Below you can find an overview of the different cost components that are taken i
| ***Subject*** | ***Cost components*** |
|---|---|
| Power-to-power (p2p) | CAPEX and OPEX of houshold batteries, EV batteries, grid batteries, OPAC and pumped storage
| Power-to-gas (p2g) | CAPEX and OPEX of onshore and offshore electrolysers
| Electrolysis from grid on land | CAPEX and OPEX of electrolysers connected to the electricity grid
| Power-to-heat (p2h) | CAPEX and OPEX of industrial p2h boilers
| Storage | CAPEX and OPEX of hydrogen and heat

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6 changes: 3 additions & 3 deletions docs/main/electricity-conversion.md
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Expand Up @@ -24,11 +24,11 @@ See [Merit order](merit-order.md) for more information on the clearing of the de

## Description of technologies

### Power-to-gas
### Electrolysis from grid on land

Electricity can be used to produce hydrogen through the electrolysis of water. The sustainability of hydrogen from power-to-gas therefore depends on the carbon intensity of the electricity used to produce. In the ETM, the hydrogen produced by power-to-gas will be supplied to the central hydrogen network.
Electricity can be used to produce hydrogen through the electrolysis of water. The sustainability of hydrogen from electrolysis therefore depends on the carbon intensity of the electricity used to produce. In the ETM, the hydrogen produced by electrolysis will be supplied to the central hydrogen network.

You can determine the installed capacity of onshore power-to-gas plants and their willingness to pay in the [Conversion to hydrogen](https://energytransitionmodel.com/scenario/flexibility/flexibility_conversion/conversion-to-hydrogen) section. Additionally, it is possible to set installed capacity for an offshore electrolyser as part of a hybrid offshore wind hub. Capacity can be installed in the [Flexibility](https://energytransitionmodel.com/scenario/flexibility/flexibility_net_load/hybrid-offshore-wind-components) section. See [Hybrid offshore wind](hybrid-offshore-wind) for more information.
You can determine the installed capacity of electrolysis from grid on land and its willingness to pay in the [Flexibility](https://energytransitionmodel.com/scenario/flexibility/flexibility_conversion/conversion-to-hydrogen) section. Additionally, it is possible to set installed capacity for an offshore electrolyser as part of a hybrid offshore wind hub in the [Renewable electricity](https://energytransitionmodel.com/scenario/supply/electricity_renewable/wind-turbines) section. See [Hybrid offshore wind](hybrid-offshore-wind) for more information.

:::info Hydrogen
See [Hydrogen](hydrogen.md) for more information about the central hydrogen network; what other types of supply are available, where to set hydrogen demand and how the central hydrogen network is balanced.
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4 changes: 2 additions & 2 deletions docs/main/flexibility.md
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Expand Up @@ -11,7 +11,7 @@ Some forms of flexibility are more suited to process large (fluctuations in) vol

_Suitable for large (fluctuations in) volume_
* Imports/exports of gas/hydrogen
* Power-to-gas: hydrogen production from electricity
* Electrolysis: hydrogen production from electricity
* Storage of gas/hydrogen
* Seasonal storage of heat

Expand Down Expand Up @@ -103,7 +103,7 @@ See the [Supply → Hydrogen](https://pro.energytransitionmodel.com/scenario/sup
* Inflexible:
* Must-run / volatile: dedicated offshore wind turbine or solar PV plant for H2, steam methane reforming, autothermal reforming, ammonia reforming and biomass gasification
* Baseload import of hydrogen (flat curve; constant import of hydrogen)
* Hydrogen produced by power-to-gas
* Hydrogen produced by electrolysis
* Flexible:
* Storage production: salt caverns or depleted gas fields
* Steam methane reforming, autothermal reforming and ammonia reforming
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