NEW VISION OF ENGINEERING ECONOMY COURSE (VISION) MODULE 3

1
NEW VISION OF ENGINEERING ECONOMY COURSE (VISION)
MODULE 3

• LECTURE 6
• Cairo, 16 July 2005

2
Case Studies - 1

• Objectives
• Application of the payback method on a wind farm
  investment
• Investigation of critical factors in the
  investments viability
• Estimation of the optimal point to start an
  energy investment

3
in Greece
Where?
Problem Statement (1)
a wind park
Why?
What?
(scale economy, funding)
for a private investment
How big?
4
Problem Statement (2)
5
Investment Cost (1)
6
Investment Cost (2)
7
Investment Revenues
8
Cost-Benefit Analysis
9
Influence of Capital Cost-Return on Investment
10
Impact of the Inflation Rate
11
Impact of the Electricity Price Escalation Rate
12
Influence of the Turn-on Key Cost
13
Impact of the MO Cost
14
Sensitivity Analysis
15
Time-Depending Analysis
16
Economic Behavior in Different Time Points