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3. Economic Analysis The economic analysis will measure the economic and social impact of the project and assess it from the point of view of community. It will enable the transformation of the market prices used in the financial analysis into accounting prices and take into consideration the externalities that lead to social costs and benefits which were not taken into account by the financial analysis due to the fact that they currently do not generate cash expense or income. 3.1. Economic efficiency of the project The key concept of the economic analysis was to quantify the inputs and outputs of the project so that they reflect the cost of their social opportunities. This quantification was made starting from the data of the financial analysis by converting the market prices into accounting prices. 3.1. Economic efficiency of the project The "cost of energy generation for the analysed period " (EGC) will be calculated using the formula: The EGC - the cost of electricity generation for the analysed period - n Mt = operating and maintenance costs in year - t Ft = fuel costs in year - t r = discount rate 5% n = the analysed period (the period of implementation, plus the period of operation) It = investment costs in year - t Et = the amount of electricity produced MWhe. t n (I M F)(1r) ttt EGC t1 t EGC = 126.63 Euro / MWhe n E(1r) t t1 12PDF Image | Economic modeling of low-temperature geothermal energy
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