Abstract
Many European states support Combined Heat and Power (CHP) investments and provide better selling tariffs for the electricity produced. In this paper, a model was developed that can help energy planning and decision-making for CHP investments in an unstable energy market. The model uses as variables state subsidies, natural gas and electricity selling price. Five different scenarios from Greek economic reality had been used in order to evaluate their economic viability and the investment risk. Finally, a sensitivity analysis was carried out, having as variables the natural gas price and the State subsidy. The sensitivity analysis of the natural gas price showed that although profits decrease as natural gas price increases, the investment remains viable for almost twice the current natural gas price. This means that small fluctuations of natural gas price do not affect the investment to a crucial degree.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
