Economic Feasibility Of Investment Research Articles

Directing the wind: Techno-economic feasibility of green ammonia for farmers and community economic viability

There has been increasing interest in low-carbon technologies to reduce climate change impacts. However, careful assessments of their implications for the vibrancy of local economies are rare. This paper employs techno-economic analysis to assess the technical and economic feasibility of investment in one such technology: local green ammonia production and its contribution to the economic viability of the local economy. The analysis considers price projection and debt financing options, and alternative energy-to-ammonia technologies. The approach is broadly applicable and is illustrated here using a case study in which 248,188 MT of traditional ammonia are replaced with local wind energy-produced ammonia for farmers in Southwest Kansas, United States. Economic feasibility is defined as the ability to accrue enough discounted cash flow at the end of the turbines’ 25-year lifespan to enable their replacement. The alternative technologies are the traditional Haber-Bosch and the emerging solid oxide electrolysis cell (SOEC). The total plant capital cost amounted to $781.72 million while the plant operating costs were set at $100/MT with the energy supplied by the project’s energy system. The results show how economic feasibility sensitivity to technology and financing options are evaluated and communicated to scientists, policymakers, and farmers. The 6.5 MWh/MT wind energy-to-ammonia SOEC technology presented the best economic results under all price projections. The community’s investment yielded the highest return when debt was used to finance 50% of the capital investment. Returns exceeded the average annual S&P return of about 7% from 1957 to 2021. The work shows how consideration of technology efficiencies and creative financing strategies can contribute to the economic welfare of farmers and their communities even as they contributed to reducing crop production’s carbon footprint.

Flock Level Economic Loss Due to Peste Des Petits Ruminants Outbreak in Transhumance Sheep and Goat Population in Himachal Pradesh (India)

Background: Quantification of economic losses due animal diseases like peste-des-petits ruminants (PPR) helps in visualizing the impact of the disease in relational context as well as assist in prioritizing the disease control/eradication options. This study aimed to estimate the farm-level economic losses due to the disease in the state of Himachal Pradesh and carry out a cost-benefit analysis of control programme through vaccination.Methods: An investigation was carried out on an outbreak of PPR in transhumance small ruminant population in Himachal Pradesh (HP). The incidence rates of PPR as obtained in the study were projected to the small ruminant population in the state.Result: The overall morbidity and mortality rates were 36.85% and 27.69% and 25.32% and 1.44%, in goats and sheep, respectively. The estimated annual economic loss due to PPR in HP was INR 2495 million (under high incidence scenario). Under moderate and low incidence rate assumptions, the total losses were estimated at INR 1871 million and INR 1265 million, respectively. Benefit-cost analysis of vaccination against the disease in the state was carried out and the Benefit-Cost Ratios (BCR), ranging between 43:1 to 198:1 revealed the economic feasibility of investment made in PPR control.

Economic Feasibility of Electrical Power Cogeneration from Forestry Biomass in an Engineered Wood Panel Industrial Facility

The use of sugarcane bagasse, straw, and chaff for electrical power generation in sugar-ethanol mills has been established; more recently, the recovery of forest biomass has been increasing in an attempt to reduce the use of fossil fuels and to increase electrical power generation focused on self-consumption. The potential for power generation in this segment is considerable, but the use of biomass in cogeneration processes depends on an attractive return on investments. This study was designed to analyze the economic feasibility of investment in thermal and electrical power generation equipment that makes it possible to use forest and logging residues and wood chips to replace the current gas-fired power generation in an engineered wood panel industry facility (Scenario 1) or investment only in thermal generation equipment (Scenario 2). Results showed that the investment to replace natural gas with forest biomass is economically viable not only for the generation of both types of energy but also for the generation of thermal energy itself. High costs of energy inputs such as natural gas and electricity for the industry explain the results, despite the requirement for high investments in cogeneration systems.

Risk management of the alternative power engineering

The article summarizes the experience of risk neutralization arising due to the power generation from the alternative sources solar, wind, hydraulic power engineering on the basis of ebbs and flows, the use of biomass power plants, etc. At the same time, the tool for blitz diagnostics of risks of the alternative power engineering is proposed in order to substantiate the economic feasibility of investments. The results of the risk assessment application of alternative power engineering reduce the level of information uncertainty relating to the transition to new energy sources or diversification of energy supply.

Industrial Photovoltaic Systems: An Economic Analysis in Non-Subsidized Electricity Markets

Photovoltaic (PV) systems are becoming a relevant electricity source, characterised by a growing trend in the last years. This paper analyses the economic feasibility of investments in industrial PV systems of different sizes (200 kW, 400 kW, 1 MW, and 5 MW), in the absence of subsidies, and in a mature market (Italy). The selected indicators for this kind of assessment are net present value (NPV) and discounted payback time (DPBT). Furthermore, the environmental advantage in comparison to fossil sources of energy is evaluated through the reduction of carbon dioxide emissions (ERcd). Finally, a sensitivity analysis on critical variables (percentage of self-consumed energy, average annual insolation rate, annual electricity purchase price, annual electricity sale price, unitary investment cost and opportunity cost) is conducted. Results highlight the strategic role of self-consumption in a market characterised by an absence of public policy incentives and the presence of interesting economic opportunities for industrial applications.

FACTIBILIDAD TÉCNICA Y ECONÓMICA DE RIEGO POR ASPERSIÓN EN PRADERAS ARTIFICIALES DESTINADAS A LECHE DEL SUR DE CHILE

There are several manners that can be used to increase pasture production, one of which is irrigating during dry periods. It is important to generate information regarding the technical and economic feasibility of investment in equipment for pasture sprinkler irrigation in southern Chile. A total of 60 irrigation projects were carried out, using different combinations of factors involved, such as: different irrigation equipments (quick coupling pipes, hose rewinding drum, central pivot and K-Line); energy sources (gravimetric energy, electricity and oil); water sources (superficial and groundwater); irrigated surface areas (10 and 25 ha) and partial project financing through Law 18.450 (0 and 50% irrigation subsidy). For each project, technical and economic aspects were calculated, analyzing investment and annual costs per hectare. The results showed that the central pivot was the system that required the lowest water flow for the application of the irrigation rate; on the contrary, quick coupling systems used the greatest water flow. In terms of the investment costs, K-Line systems showed the lowest and those of the central pivot were the more expensive. Regarding energy sources, systems with a water fall (gravity) and diesel operation required the lowest investment, whereas electrically powered systems were the most expensive. In general, projects without an irrigation subsidy (Law 18.450) were not economically profitable (for 10 and 25 ha), except for the K-Line projects (10 and 25 ha) and quick coupling projects (10 and 25 ha). On the other hand, some 25 ha subsidized irrigation projects were economically attractive, being outstanding K-Line and central pivot systems, which presented the greatest marginal income of this study, reaching $173.229 ha-1. Systems that used underground water had a negative income, even when they were subsidized.

FINANCING PRIVATE WATER RESOURCE DEVELOPMENT: ANALYSIS OF A STATE LOAN PROGRAM1

ABSTRACT. A State loan program was analyzed for its effects on groundwater development in Wyoming. The analysis focused on the effects of low‐interest State financing on the economic feasibility of investments in center‐pivot sprinkler irrigation systems. The feasibility analysis indicated that investments in sprinkler systems for production of cash crops are highly profitable, and would frequently be carried out whether or not the State loan program were available. Investments in sprinklers for production of forage crops are perhaps frequently made attractive by the loan program. Thus, while the program appears to have accelerated the pace of private water resource development in Wyoming, it has also subsidized some investments that would have been carried out regardless of the program's existence. Further analysis indicated that sprinkler investments carried out with State financing contribute substantially to firm growth when cast crops are grown, but have less marked, and sometimes negative, effects on growth when forage crops are produced. Some positive effects of the loan program on southeast Wyoming's regional economy were noted, though a complete empirical analysis of regional impacts was beyond the scope of the study.