Investment Value Analysis for Renewable Energy Projects

The accelerated deployment of renewable energy resources in the utility grid is affected by various economic, technical and regulatory barriers. While we are making substantial progress with the technical and regulatory issues, there is a need for refined economic evaluation methodologies to provide a better understanding of renewable energy investments. This paper presents an alternative, easy to use, economic evaluation methodology and examines the sensitivity of each parameter on the investment value or worth of renewable projects based on the anticipated cash flow taking tax incentives and local constraints into account. This methodology is applicable to all renewable and alternative energy investments under different types of ownership.