Economic modeling of low-temperature geothermal energy

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Economic modeling of low-temperature geothermal energy ( economic-modeling-low-temperature-geothermal-energy )

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particular, but also to other types of equipment led to the modification of the support since 2014. Way to 1MWh produced from solar energy there have been awarded 3 green certificates since 2014. The further decrease in the number of green certificates granted for the production of electricity through solar panels also affect the project. A possible further reduction in the number of green certificates from 3-2 for each product MWhe affect the value of IRR. Internal rate of return sits on 8.36% and a variation in the cost of 5% to 10% lead to changes in the internal rate of return of up to1%. The electricity production from renewable re-generated sources is only profitable as an option in obtaining grants by awarding green certificates to compensate the high cost of investment per unit of energy produced. In the extreme scenario in which it is deemed not to receive green certificates for electricity from geothermal water, the rate of return IRR is negative. Internal rate of return IRR = -2.39%. The project is not profitable anymore. The reduction in income through a possible change in the retail price of electricity and green certificates affect IRR sensitively. The project remains cost effective to a decrease in the selling price of electricity over 21%, combined with a decline in the price of green certificates by 15%. These values are obtained EGC = 136.69 euro for 1MWh delivered in the system. The decrease in these parameters places the project in the uneconomic area. Although it retains a positive IRR of 4%, no return parameters can be stored. Any extension or reduction of income or cost variables significantly influence profitability indices (Internal Rate of Return IRR or NPV net present value, net present value quotient NPVQ). -15% -10% -5% operation costs -2,0% -2,5% -3,0% -3,5% parameters variation Financial sensitivity analysis graph 3 0,0% -0,5% -1,0% -1,5% 0% 5% 10% 15% net incomes investment Financial sensitivity analysis graph 4 6,0% net incomes investment operation costs 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% -15% -10% -5% parameters variation 10% 15% 0% 5% 15 IRR IRR

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