Coal Asset Valuation Tool (CAVT)

Synapse’s Coal Asset Valuation Tool (CAVT) is a spreadsheet-based database and model that analyzes the future economic viability of coal units. CAVT estimates the costs for individual coal units to comply with environmental regulations and compares these costs to electricity market prices. Even without including the costs of environmental controls, many existing coal plants are currently uneconomic when compared to other market purchases.

CAVT aggregates publicly available data (such as capacity, generated power, and heat rate) on non-cogenerating coal units and combines this with publicly available cost methodologies to calculate the cost of complying with environmental regulations. The calculated future cost of each coal unit is compared to the estimated future cost of wholesale market purchases to determine future economic viability on a unit-by-unit basis.

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