It is well known that the good management concerns primarily the make of wise decisions and optimum choices between alternatives.
A feasibility analysis determines either the which or the whether of the proposed Project ,which way to do it, or whether do it at all. In the material world the feasibility is twofold, Engineering & Economic. Engineering feasibility means that the Project being considered is technically possible and point out the alternative ways in which the project could be handled. Economic feasibility means that the Project it can be justified on an economic basis as well and dictate how it should be carried out. Economic feasibility measures the overall desirability of the project in financial terms and indicates the superiority of a single approach over others that may be equally feasible in a technical sense.
The production of electricity through an Electric Energy system allows to obtain economic benefits as a result of:
- Sale of energy
- Savings due to lower purchase of energy from the electrical grid
- Obtaining the incentives
- Tax benefits
However, the development of any energy system comes at a relevant cost which must be compared with future revenues to be able to evaluate the cost-effectiveness.
POLYENERGY for the development of any Electric Energy system applies a ten (10) step procedure that is described in the relevant site pages of “Electric Energy” category of services. Economic studies are required during the fourth (4th) and eighth (8th) development step . In the fourth (4th) step ,economic feasibility analysis is conducted for filtering the most viable technically acceptable solutions (system architectures& equipment quality & cost ). In the eight (8th) step complete package of Economic Studies is prepared (based on FEED engineering quantification & system parameters ) for assisting the Client during the whole phase of the Project Financing.
POLYENERGY utilizes engineering& economic analysis tools so to be able to analyze the convenience of the realization of any electric energy system, evaluating costs of realization and simulating the profitability during the assessment period.
The economic evaluation involves a lot of data to be processed, concerning:
- Incentives: on the energy produced (FITI : Feed-in Tariff Incentive / RHI : Renewable Heat Incentive and GHGRI : Green House Gas Reduction Incentives ), that may be available in the country in which the system operates.
- Costs: during Development and O&M phasesof the Energy system
- Financing: Sets the details of a possible partial or total financing for the realization of the Energy system
- Energy consumption: both the overall consumption and the self-consumption of system
- Electricity Sales contract: for the contract type (Sale or Net Metering ) of electricity fed into the electric grid.
- Heat sales contact: for the Heating or Cooling energy that is fed into the distribution piping network that supplies the contracted consumers (e.g Greenhouses, Factories etc ).
- Decay: of the annual production
- Changes: in energy costs due to inflation&in the energy system generation capacity due to scheduled upgrades.
- Taxes: charged to earnings procured by the Electric energy system.
