Economic Analyses of Wind Energy Projects - Revision history

Lisafeldmann at 12:01, 16 June 2015

2015-06-16T12:01:50Z

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Ranisha at 12:25, 29 August 2014

2014-08-29T12:25:48Z

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Ranisha at 12:36, 12 August 2014

2014-08-12T12:36:19Z

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Ranisha: /* Further Information */

2014-08-01T09:58:09Z

Further Information

Ranisha: /* Further Information */

2014-08-01T09:43:04Z

Further Information

Wiki Gardener at 14:34, 16 June 2014

2014-06-16T14:34:33Z

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Wiki Gardener: moved Economic analyses of wind energy projects to Economic Analyses of Wind Energy Projects

2012-08-09T14:07:28Z

moved Economic analyses of wind energy projects to Economic Analyses of Wind Energy Projects

Wiki Gardener at 14:06, 9 August 2012

2012-08-09T14:06:43Z

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Wiki Gardener at 14:06, 9 August 2012

2012-08-09T14:06:33Z

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Wiki Gardener at 14:02, 9 August 2012

2012-08-09T14:02:43Z

@@ Line 509: / Line 509: @@
 <br/>[[File:Results of scenario analysis for Ethiopian wind park project.jpg|frame|center|180px|Summary Results of Scenario Analysis]]
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 *[[Portal:Wind|Wind Portal on energypedia]]<br/>
-*[[Financing_Aspects_-_Wind_Energy|Financing Aspects - Wind Energy]]<br/>
+*[[Financing Aspects - Wind Energy|Financing Aspects - Wind Energy]]<br/>

@@ Line 509: / Line 509: @@
 <br/>[[File:Results of scenario analysis for Ethiopian wind park project.jpg|frame|center|180px|Summary Results of Scenario Analysis]]
 == Further Information ==
-[[Portal:Wind|Wind Portal on energypedia]]<br/>
+*[[Portal:Wind|Wind Portal on energypedia]]<br/>
+*[[Financing_Aspects_-_Wind_Energy|Financing Aspects - Wind Energy]]<br/>

← Older revision		Revision as of 14:02, 9 August 2012
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−	= Overview<br/> =	+	== Overview<br/> ==

	Following the World Bank Handbook for Economic Analysis of Investment Operations<ref>World Bank (1996) Handbook on Economic AnalysisfckLRof Investment Operations, retrieved 19.7.2011 [[http://rru.worldbank.org/documents/toolkits/highways/pdf/82.pdf]]</ref>, the main purpose of an economic analysis is to help to design and select projects that contribute to the welfare of a country. Whereas the financial analysis evaluates the project from the point of view of the operating company or '''independent power producer (IPP)''', the economic analysis evaluates the project from the point of view of the whole economy of the country.<br/>The purpose of the investigation is to compare from a macroeconomic standpoint the benefits of the project with the costs it incurs, as is customary in any cost-benefit analysis. The standard of evaluation for costs and benefits is a monetary quantification. To the greatest possible extent, the project impacts are evaluated in terms of economic market prices. Shadow prices are employed, i.e., internal accounting prices that free the day-to-day (market) prices from multifarious biases. In other words, shadow prices represent an attempt to illuminate the actual costs of a product or service for the economy as a whole. In comparison with micro- and macro-economic prices, shadow prices are devoid of taxes and charges, duties and subsidies.<br/>The economic analysis is conducted in the form of equalising the value of getting wind farms introduced to the power system to the induced savings in the power system in terms of avoided costs of thermal power generation.		Following the World Bank Handbook for Economic Analysis of Investment Operations<ref>World Bank (1996) Handbook on Economic AnalysisfckLRof Investment Operations, retrieved 19.7.2011 [[http://rru.worldbank.org/documents/toolkits/highways/pdf/82.pdf]]</ref>, the main purpose of an economic analysis is to help to design and select projects that contribute to the welfare of a country. Whereas the financial analysis evaluates the project from the point of view of the operating company or '''independent power producer (IPP)''', the economic analysis evaluates the project from the point of view of the whole economy of the country.<br/>The purpose of the investigation is to compare from a macroeconomic standpoint the benefits of the project with the costs it incurs, as is customary in any cost-benefit analysis. The standard of evaluation for costs and benefits is a monetary quantification. To the greatest possible extent, the project impacts are evaluated in terms of economic market prices. Shadow prices are employed, i.e., internal accounting prices that free the day-to-day (market) prices from multifarious biases. In other words, shadow prices represent an attempt to illuminate the actual costs of a product or service for the economy as a whole. In comparison with micro- and macro-economic prices, shadow prices are devoid of taxes and charges, duties and subsidies.<br/>The economic analysis is conducted in the form of equalising the value of getting wind farms introduced to the power system to the induced savings in the power system in terms of avoided costs of thermal power generation.