Energy: merchant generator with capacity revenue
A merchant generator earning both energy and capacity revenue, exposed to price rather than to a contracted offtake.
Every number below is checked against an independent reference implementation on every commit — period by period, and on each metric, inside a declared tolerance. See benchmark methodology.
The case
A 100 MW merchant renewable project — no contracted offtake, so it sells energy at market prices — with a separate flat capacity payment for being available. It claims the production tax credit over its first ten years and depreciates on the five-year MACRS schedule. Because the production credit and the investment credit are mutually exclusive, there is no basis reduction here: depreciation runs on the full $100m.
The reference
A national laboratory's open-source project-finance model, run for the merchant and production-credit configuration.
Not vendored. The tool was run once outside the repository and only its output numbers were carried across.
What it exercises
| Pack | energy |
| Contract types | energy.merchant, energy.capacity, energy.ptc, energy.om, energy.debt_service, energy.macrs_shield, energy.capex |
| Language features | pack contracts; term units on the credit rate |
| Conventions | merchant pricing with escalation, a flat capacity payment, a ten-year production credit with an inflation adjustment, MACRS on full basis |
The result
Every asserted line agrees with the reference.
The claim is narrower than its companion's. energy.merchant and energy.ptc
are the same expression as energy.ppa with different term names, and
energy.capacity is a single division, so agreement shows the terms reach the
right places and the contracts compose rather than that a new formula is
correct.
The delta
None on the asserted lines.
One mechanic here is new. The production credit is a staircase: the inflation-adjusted rate is published rounded to the nearest tenth of a cent per kilowatt-hour, so it steps once a year and holds. Carried continuously it is wrong by up to 1.8% in a single year and about −0.3% over the ten-year window, and the error alternates sign rather than drifting.
Run configuration
{"deterministic":{"annual_discount_rate":0.064}}Verified results
Checked period by period: 6 series across 14 periods — 84 values in all, each within ±0.001 of the reference.
energy.merchant.revenueenergy.capacity.revenueenergy.ptc.creditenergy.om.expensedomain.energy.debt_service_periodicenergy.macrs.shield