new vision of engineering economy course (vision) module 3
DESCRIPTION
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 PresentationTRANSCRIPT
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NEW VISION OF ENGINEERING ECONOMY
COURSE (VISION)
MODULE 3
LECTURE 6 Cairo, 16 July 2005
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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
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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
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JULY 2005 TEI OF PIRAEUS 4
Problem Statement (2)
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JULY 2005 TEI OF PIRAEUS 5
Investment Cost (1)
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JULY 2005 TEI OF PIRAEUS 6
Investment Cost (2)
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JULY 2005 TEI OF PIRAEUS 7
Investment Revenues
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JULY 2005 TEI OF PIRAEUS 8
Cost-Benefit Analysis
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JULY 2005 TEI OF PIRAEUS 9
Influence of Capital Cost-Return on Investment
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JULY 2005 TEI OF PIRAEUS 10
Impact of the Inflation Rate
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JULY 2005 TEI OF PIRAEUS 11
Impact of the Electricity Price Escalation Rate
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JULY 2005 TEI OF PIRAEUS 12
Influence of the Turn-on Key Cost
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JULY 2005 TEI OF PIRAEUS 13
Impact of the M&O Cost
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JULY 2005 TEI OF PIRAEUS 14
Sensitivity Analysis
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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
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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