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Making transition investable

22 · Practical appendices

Appendix: illustrative transition studies

Replicate the retained annual studies through controlled comparisons, layer residuals and order and cap diagnostics.

148 pages · Edition 2026-10-10

Practical appendices

A falsifiable replication and extension plan

Build a comparison map and reconcile each layer

This appendix is a laboratory notebook for the retained annual-electricity studies. Its comparison map identifies a perturbation, an expected invariant and an observable failure before inspecting a result. That ordering makes the studies useful for diagnosing the calculation. A match with frozen output establishes reproduction; a match with an independently derived identity tests a different property. All inputs remain illustrative. The complete Aster Works dispositions and authoritative responsibility register are in The committee needs balanced evidence. This appendix uses that case by reference and concentrates on the experiments behind the numerical exhibits.

Construct a comparison sheet from the complete input objects. Match global fields by name and measures by their stable names, then mark additions, deletions, field changes and changes of array position separately. A pair described as price-only must have identical demand, factors, measure terms and valuation convention. An order-only pair must contain the same measures even though their positions differ. A standalone efficiency investment is a different package when supply capital and continuing costs are removed. This field-level classification prevents a result difference from being assigned to a cause that the actual input comparison cannot isolate.

The result register is a compact index into complete output objects, not the entire test evidence. Use its physical and cash columns to select a comparison, then read the corresponding measure records, warnings and reversed-order diagnostic. Record a predicted relationship before running the comparison: equality, a direction under stated conditions or an algebraic difference. Keep an unexpected result visible until its cause is located. Changing the prediction after seeing the result would remove the experiment's ability to expose an error in either the model or the reader's interpretation.

Illustrative calculation. Assumptions and sensitivity are published with the model.

Result register for the original study cohort

Every row belongs to its own retained input. The quantities are illustrative conditional results, not forecasts or measured performance. The financial and physical columns should be read together before interpreting the ratio. Additional numerical boundary studies are reported separately.

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Result register for the original study cohort
StudyDemand, annual MWhAbatement, annual tCO2eNet saving, annual USDNPV, USDCost, USD per tCO2e
foundation8,000.003,810.00380,000.00263,709.65-9.18
efficiency-only8,000.001,200.00230,000.00933,297.94-103.20
added-demand12,000.00-1,200.00-245,000.00-1,946,339.11not defined
low-factor8,000.00105.00380,000.00263,709.65-333.27
adverse-prices8,000.003,810.00-215,000.00-4,220,256.77146.98
zero-abatement10,000.000.00220,000.001,557,937.16not defined
sequence-interaction9,000.00600.00105,000.00-208,711.8146.16
curtailment10,000.005,800.00360,000.00212,988.09-4.87
overlap-efficiency-first8,000.005,840.00520,000.001,318,760.57-29.96
overlap-supply-first8,000.005,840.00520,000.001,318,760.57-29.96

Canonical output scalar pointers from the original ten-study cohort. Additional boundary studies are documented separately. Nonpositive-abatement ratios remain not defined.

Comparison map: a changed field must have a named effect

Use this diagnostic sheet with the complete retained fixtures. Each row names the controlled change, its expected invariant and a discrepancy that would locate a calculation or interpretation problem.

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Comparison map: a changed field must have a named effect
ComparisonControlled changeExpected invariantDiagnostic failure
Foundation versus low factorGrid attribution factor only.Demand, electricity mix, savings, capital and NPV.A cash change indicates an unintended input difference or factor entering the cash calculation.
Foundation versus adverse pricesGrid and renewable unit prices only.Demand, electricity mix and attributed abatement.A physical change indicates price entering the balance or an uncontrolled fixture edit.
Overlap pairPositions of the same efficiency and supply measures.Final package state and value for this pair.Equal final states with altered increments are allocation dependence, not new package savings.
Sequence interaction versus its reversalWhether added load precedes efficiency.Measure inventory, total capital and continuing expenditure.Assuming final demand is invariant would hide the changed efficiency base.
Zero-abatement versus other packagesFactors and independently defined supply and cost terms.No cross-package financial equality is predicted.Treating all result differences as a factor effect confounds the comparison.

Original replication instrument. The zero-abatement case is deliberately classified as a separate package rather than a pure factor perturbation.

Reconciliation can locate a defect more precisely than a headline comparison. Let E denote final demand, G grid energy, R admitted renewable energy, Q accumulated renewable supply and C unused supply. The physical residuals are E minus G minus R and Q minus R minus C. Both should vanish in the annual boundary, with all quantities nonnegative. The emissions residual is reported emissions minus the sum of G times the grid factor and R times the renewable factor. The cash residual is reported net saving minus baseline electricity cost plus final electricity cost plus accumulated continuing expenditure. A nonzero residual identifies the layer that requires examination.

Apply these checks after each state transformation as well as at package close. An early residual that disappears later can be hidden by compensating mistakes. Separately check telescoping: successive emissions differences must sum to the baseline-to-final difference, and successive energy-cost differences must sum to the baseline-to-final cost saving. Sum signed increments even when an increment's cost-per-tonne field is unavailable. Dropping a nonpositive-abatement row from those sums would change the physical package. An average of the displayed available ratios is consequently an unsuitable reconciliation; compare the summed numerators and denominators first.

Financial reconciliation uses the same constant annual convention as the engine. Capital divided by the annuity factor, less net annual saving, must equal the package annualised cost. Net annual saving times that factor, less capital, must equal NPV. These identities do not independently establish the chosen horizon or discount rate. They do detect a displaced sign, duplicated continuing cost or a mixed convention between rows and totals. Carry full canonical quantities into the check. Displayed decimals are for reading; subtraction of separately rounded values may create an apparent residual that is solely a display effect.

Derive the expected factor and price differences

The factor and relative-price pairs allow a stronger test than inspecting whether the headline improves. With B denoting baseline demand and the final mix held fixed, a grid-factor change alters abatement by B minus G, multiplied by the factor change. A renewable-factor change alters abatement in the opposite direction, by R times its change. Neither term enters the supplied bill. The factor pair therefore tests the dependency graph: attribution changes while energy and cash remain fixed. It also shows why a more negative ratio cannot be interpreted without checking the reduction quantity that divides the unchanged annual cost.

For the same fixed mix, a grid-price change alters net annual saving by B minus G, multiplied by its price change. A renewable-price change alters saving in the opposite direction, by R times its change. NPV changes by the annuity factor times the resulting saving change when capital and continuing costs are held. This gives an independent signed prediction for the relative-price comparison. A simultaneous common price multiplier answers a different question: it scales gross energy-cost saving while leaving measure continuing expenditure unscaled. The common-price diagnostic cannot be substituted for an adverse change in the relative prices.

Turn these relations into an extension design without manufacturing a new observation. Select a supported input field, state an admissible direction of change and name all fields held constant. Derive the expected difference symbolically, then compute a complete successor fixture if a numerical experiment is needed. Compare the derivative prediction only while its physical regime is unchanged. When a changed supply quantity reaches the annual cap, the regime changes and the next section supplies the appropriate prediction. A field change that also changes service, capital or a tariff obligation requires another comparison design rather than a claim of isolated sensitivity.

Illustrative calculation. Assumptions and sensitivity are published with the model.

Changed terms that define the factor, price and denominator studies

The selected input fields make the comparison design explicit. Other complete inputs remain in the retained files; the text states when a case has a separate package.

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Changed terms that define the factor, price and denominator studies
Study fieldSupplied valueExperimental role
Foundation grid factor0.60 tCO2e/MWhReference attribution parameter.
Low-factor grid factor0.03 tCO2e/MWhOnly input changed from foundation.
Adverse grid price70.00 USD/MWhChanged relative commercial term.
Adverse renewable price140.00 USD/MWhChanged relative commercial term.
Zero-abatement grid factor0.02 tCO2e/MWhEqual factor basis in a separately defined package.
Zero-abatement renewable factor0.02 tCO2e/MWhNo attributed supply-switch reduction under that basis.

Canonical input pointers. Values are illustrative and belong to the named experiment rather than any actual regional factor or tariff.

Signed difference ledger for a fixed annual electricity mix

Delta means successor minus reference. B is baseline demand, G final grid energy, R renewable energy used and AF the common annuity factor. Every expression assumes the other named inputs and the final physical mix are held.

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Signed difference ledger for a fixed annual electricity mix
Changed termAbatement differenceAnnual saving differenceNPV difference
Grid factor(B minus G) times Delta grid factorUnchangedUnchanged
Renewable factorNegative R times Delta renewable factorUnchangedUnchanged
Grid unit priceUnchanged(B minus G) times Delta grid priceAF times the saving difference
Renewable unit priceUnchangedNegative R times Delta renewable priceAF times the saving difference
Continuing expenditureUnchangedNegative Delta continuing expenditureAF times the saving difference

Original algebraic cross-check derived from the declared electricity bill and emissions balance.

Separate path dependence, endpoint equality and the cap regime

The order experiment should distinguish an altered final state from an altered allocation along the path. Define an added demand a and an efficiency fraction e applied to the demand present at its step. Adding a before applying efficiency leaves less final demand than adding a afterwards, by a times e. This difference follows by expanding the two transformations; it does not require the app's reversed-order output as its premise. It is also an engineering question. The transformation is appropriate only if the efficiency mechanism can affect that added load. The input order encodes that scope assumption and cannot establish it physically.

Efficiency and supply accumulation behave differently. In the overlap pair, the efficiency step changes demand while the supply step changes accumulated Q; neither alters the other's input parameter. Their final demand and accumulated supply therefore coincide, and the annual cap produces the same final mix. Intermediate states need not coincide. A reduction assigned to the first step can be reassigned to the second when the path changes. The practical verification object is a pair of endpoint and path checks: compare the complete final state for equality, then reconcile each path's signed increments to that common endpoint. Do not interpret a changed row as a new standalone benefit.

The annual cap creates a useful stress test of its own. Below the cap, an added supply quantity displaces grid energy; its cash effect depends on the price difference, and its attributed reduction depends on the factor difference. Above the cap, additional Q increases C without changing E, G or R. Under the retained used-energy charging convention it adds neither a bill saving nor an emissions reduction. Keep capital and continuing expenditure unchanged for this quantity-only diagnostic. If those costs change with Q, their financial effect is a separate perturbation. Purchase obligations for C are examined symbolically in the following worksheet appendix.

Illustrative calculation. Assumptions and sensitivity are published with the model.

Selected load and supply terms defining the remaining studies

The table exposes the terms behind the interaction and annual-cap cases. These quantities do not constitute an equipment design or a temporal supply profile.

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Selected load and supply terms defining the remaining studies
Study and fieldSupplied valueScope consequence
Sequence-interaction added load2,000.00 MWh/yearIntroduced before the supplied efficiency step.
Sequence-interaction efficiency25.00 %Can act on the added load under this convention.
Curtailment renewable supply16,000.00 MWh/yearExceeds annual demand in the retained case.
Overlap efficiency percentage20.00 %Same measure in both overlap orders.
Overlap renewable supply9,000.00 MWh/yearSame supply measure in both overlap orders.

Canonical input pointers from the named studies. Percentages apply to remaining demand in the supplied sequence.

Stress plan: verify the regime, then test its invariant

Record the retained-input, prediction, recomputed-output and discrepancy references when performing a supported numerical extension.

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Stress plan: verify the regime, then test its invariant
ProbeHeld conditionsIndependent predictionEvidence to retain
Supply below demandFinal demand, factors, prices and costs.Added supply replaces equal grid energy until the cap.Input diff, energy residuals and the signed bill and factor differences.
Supply beyond demandFinal demand and costs; used-energy charge basis.Extra supplied energy appears only as additional unused supply.Supply, used quantity and unused quantity, with cap regime stated.
Demand addition around efficiencyAdded quantity, efficiency fraction and other measures.Final-demand difference is added quantity times efficiency fraction.Both ordered arrays and the affected-load interpretation.
Common positive scaleFactors, unit prices, percentages and valuation convention.Scale energy quantities, capital and continuing costs together: amounts scale and defined cost ratios remain unchanged.Scale rule, schema admissibility and unrounded package fields.
Signed marginal incrementComplete package and sequential state records.Signed increments reconcile even if a row ratio is unavailable.All rows, including nonpositive-abatement rows, and the package sums.

Original experiment design for supported annual transformations. Preserve the complete inputs and do not infer temporal supply availability from these tests.

Extend the portfolio with a falsifiable prediction

Write the challenged dependency and the expected invariant before selecting a perturbation. Compare complete input objects, retain the admissible change and state the cap regime. Recompute the whole output and reconcile physical, emissions and cash residuals. An unexpected result returns to the earliest state or field where the prediction fails. If the calculation passes but the affected-load or contractual premise is unestablished, retain that premise as a separate applied evidence task using the instruments below.

A coherent test matrix can still leave a structural error

Invariants can pass when reference and successor share the same incorrect boundary. A bill calculated consistently from used supply will not reveal a contract that charges for delivery. A perfectly reconciled demand reduction will not establish comparable service. Add a boundary challenge alongside the arithmetic tests: name a material relation that the instrument excludes, then ask whether it could change the proposed reliance. If it could, obtain evidence or choose a wider method. More perturbations inside the unchanged boundary cannot answer that structural question.

The test objects retain the annual screen boundary

These illustrative annual studies do not establish site performance, hourly matching or contractual entitlement. Their invariant tests concern the declared transformation and constant annual cash convention. Numerical equality is assessed before display rounding; applied evidence and the actual claim boundary remain necessary at reliance.

Numerical equality and a supported change of scale

Illustrative calculation. Assumptions and sensitivity are published with the model.

The small-positive-abatement study separates an undefined denominator from a small one. Annual baseline demand 1e-09 MWh, factor 1e-09 tCO2e/MWh and 10% efficiency create positive calculated reduction 1e-19 tCO2e/year. Zero investment and continuing cost, a one-year zero-rate convention and the supplied energy price produce package marginal cost -1000000000 USD/tCO2e. The ratio is mathematically defined because the computed denominator is strictly positive. The extreme inputs diagnose arithmetic rather than represent measurable industrial abatement.

The canonical decimal annual balance determines whether reduction is positive, zero or negative before each quantity is converted for display. A small genuine positive reduction remains eligible for a cost ratio, without an absolute floor. Separately rounding baseline and final totals can obscure that difference, so subtracting displayed totals does not reproduce the unrounded comparison. The reversed-order physical diagnostic compares the two canonical annual emissions balances exactly. A positive software denominator establishes neither detection capability, materiality, reporting eligibility nor a certified reduction. Those need the baseline boundary, measurement evidence and claim rules developed in the preceding chapters.

Evidence at the point of use

Open a citation in the chapter to inspect its source, stated support and limits.

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