One or more Cost Indices can be used optionally to model the evolution of the Capital Cost of a Resource, and to break down its cost structure into a number of constituent cost trends via separate Cost Index elements. For example, hardware, software, buildings, etc. can each be Cost Indices making up the cost structure of a Resource. The Unit Capital Cost of a Resource is specified in the Calibration Period, together with its Cost Structure, the proportions of one or more Cost Indices which make up its total cost. Each Cost Index represents the relative price of a certain cost component over time. Alternatively, Capital Costs may be specified more simply using per-Resource or global cost trends, like other Resource costs.
Cost Trend
A time series representing the relative development of a cost throughout the model run. A cost is specified for a Service or Resource Calibration Period; its value for other years is then calculated by multiplying the calibration cost by the normalised Cost Trend, i.e., the Cost Trend divided by its calibration-year value.
As an alternative to using Cost Trends, it is possible to define Resource costs as time series in their own right for individual Resources.
The Cost Trends for Capital, Maintenance, Churn, Decommissioning, Connection, Rental, Usage and Operations Cost may be defined both globally and for each individual Resource. The effective trend for each Resource is the product of these two trends, and these costs are further modified by individual Resource Age Factors for each cost.
Capital Costs may be modelled in more detail with reference to various Cost Index Cost Trends (as well as Economies of Scale).
Default: Constant {1.0}.