training exercises - Tellus Institute

4.3.7 Resource Costs
Finally, under the Resources section of the tree, you will specify the unit costs for
indigenously produced and imported primary resources and secondary fuels. Use the
following information to enter these costs.
Primary Resources (Indigenous production and imports):
• Coal - $20/tonne in 2000, rising to $30/tonne in 2030
• Natural gas - $0.1/m 3 in 2000, rising to $0.2/m 3 in 2030
• Crude Oil - $30/tonne, rising to $50/tonne in 2030
Secondary Resources:
• Diesel, Gasoline, LPG, kerosene and Fuel Oil - $300/tonne in 2000, rising to
$400/tonne in 2030
• Electricity is not priced here since you are modeling electricity costs instead on
the basis of input fuel and power plant costs.
Enter this base year cost data in the Current Accounts scenario since all of the scenarios
assume the same unit costs. Cost projections can be entered once for the Reference scenario.
4.4 Showing Cost-Benefit Results
In the Manage scenarios screen you can click the check boxes on the tree to indicate which
scenarios should be calculated. To keep the results reasonably simple at first you may want to
check only the Reference and Mitigation Scenarios.
In the Summaries view you can
display the Net Present Value (NPV)
of the mitigation scenario relative to
another selected scenario. The NPV
is the sum of all discounted costs and
benefits in one scenario minus another
(summing across all years of the
study).
You should see results similar to those
shown on the right. Notice that these
indicate that on the demand- side the
Mitigation scenario shows costs more
than the Reference scenario (since
here we are investing capital and
O&M into energy efficiency
measures) but that this is more than
made up for in savings in the
Transformation modules and in
avoided resource requirements, so that
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