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NEW VISION OF ENGINEERING ECONOMY COURSE (VISION) MODULE 3. LECTURE 6 Cairo, 16 July 2005. Case Studies - 1. Objectives: Application of the payback method on a wind farm investment Investigation of critical factors in the investment’s viability - PowerPoint PPT Presentation
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NEW VISION OF ENGINEERING ECONOMY
COURSE (VISION)
MODULE 3
LECTURE 6 Cairo, 16 July 2005
JULY 2005 TEI OF PIRAEUS 2
Case Studies - 1
Objectives: • Application of the payback method
on a wind farm investment• Investigation of critical factors in
the investment’s viability• Estimation of the optimal point to
start an energy investment
JULY 2005 TEI OF PIRAEUS 3
Problem Statement
(1)What?
Where?
Why?
How big?
in Greece
a wind park
(scale economy,funding)
for a private investment
JULY 2005 TEI OF PIRAEUS 4
Problem Statement (2)
JULY 2005 TEI OF PIRAEUS 5
Investment Cost (1)
JULY 2005 TEI OF PIRAEUS 6
Investment Cost (2)
JULY 2005 TEI OF PIRAEUS 7
Investment Revenues
JULY 2005 TEI OF PIRAEUS 8
Cost-Benefit Analysis
JULY 2005 TEI OF PIRAEUS 9
Influence of Capital Cost-Return on Investment
JULY 2005 TEI OF PIRAEUS 10
Impact of the Inflation Rate
JULY 2005 TEI OF PIRAEUS 11
Impact of the Electricity Price Escalation Rate
JULY 2005 TEI OF PIRAEUS 12
Influence of the Turn-on Key Cost
JULY 2005 TEI OF PIRAEUS 13
Impact of the M&O Cost
JULY 2005 TEI OF PIRAEUS 14
Sensitivity Analysis
JULY 2005 TEI OF PIRAEUS 15
Time-Depending AnalysisTime Evolution of the Main Economic Parameter of the Local Economy
-5
0
5
10
15
20
25
30
35
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Year
(%)
Return on Investment
Capital Cost
Inflation Rate
M&O Inflation Rate
Electricity Price Escalation Rate
JULY 2005 TEI OF PIRAEUS 16
Economic Behavior in Different Time Points
Lakonia-95, z=10, No=100kW, 225kW, 500kW, ω=0.45
-3
-2
-1
0
1
2
3
4
5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Years of Operation
BC
R
Lakonia-95
Lakonia-90
Lakonia-85