quintel / etsource

Data source for the Energy Transition Model
https://energytransitionmodel.com/
MIT License
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Default WTP for flexible synthetic kerosene production needs to be researched and updated #3058

Open mabijkerk opened 1 month ago

mabijkerk commented 1 month ago

For flexible synthetic kerosene production the default WTP is set to 22 euros/MWh. This is the same as the value for power-to-heat. However, I would expect that synthetic kerosene has a higher price than heat. Therefore I would expect the default WTP to be higher for synthetic kerosene production.

@kaskranenburgQ or @kndehaan could one of you pick this up?

kaskranenburgQ commented 3 weeks ago

I think this is tricky to formulate due to the role of hydrogen in the process. I found that the price of synthetic kerosene will be around 10 euros in 2025 in this study (Coincidentally, a study by Quintel & Kalavasta is mentioned in this study)

image

A MWh of kerosene is around 25.3 gallons according to this unit converter

This indicates that the wtp for 1 MWh of kerosene is around 253 euro's. Since the losses are 25%, the willingness to pay for the input is 253*0.75= 189.75 per MWh.

Normally I would say that this is the willingness to pay as well. However, I'm a bit confused about the role of the costs of hydrogen.

The input for 0.75 MWh kerosene is 0.55MWh electricity and 0.45 MWh hydrogen.

If the hydrogen costs are 189.75 per MWh, the wtp for electricity would also be 189.75 per MWh. Is there anything else that we can assume in this story? @mabijkerk