Financial evaluation 9 March 2012

Financial Feasibility Assess the ability of the utility or developer to meet the financial obligations associated with the project Cash Flow Analysis Methodology The analysis period for a power plant is divided into construction and operation periods. The equity investors invest cash during the construction period and receive cash distributions from the project during the operation period.

Cash Flow

It takes money to make money.

Input data General operating parameters/characteristics, Plant capital cost, Financial assumptions, Revenue data, and Expense data. Analysis results Debt service coverage ratios, Net present values, Internal rate of return, and Return on investment.

Cash Flow Analysis Cash flow analysis requires information of anual power generation, fuel, electricity prices, investment costs, O&M Calculate net cash flow and financial parameters, such as discounted net cash flow internal rate of return

Example of cash flow analysis

Discounted cash flow

Result of the analysis

Assumptions