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EnergyInnovation / eps-us

Energy Policy Simulator - United States
GNU General Public License v3.0
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Implement industrial clean heat PTC policy #322

Closed jrissman closed 3 months ago

jrissman commented 3 months ago

One of the most talked-about industrial sector policies right now is a clean heat production tax credit (PTC). Now that we have price-driven fuel choice for new equipment in the model (per completed issue #9), we can implement the PTC policy.

Since the PTC only affects the cost of fuel used for industrial heat, not other industrial processes (cooling, machine drive, electrochemistry, and "other"), it needs to be implemented within the Industry sector rather than upstream on the Fuels page.

An input data variable with Boolean flags will be used to designate which fuel types count as "clean" under the PTC. By default, electricity, biomass, and hydrogen will be considered clean; fossil fuels and purchased district heat will not qualify as clean.

The policy will be set not as a percentage of fuel price (since this varies by fuel) but rather as a subsidy in dollars per million BTU (in the U.S.), properly connected to the unit conversion variables so it will be expressed in local currency and local energy units in non-U.S. regions.

jrissman commented 3 months ago

Completed in 3ef8208 and 28c10fa.