Decision making models in energy projects: Impact of OPEX on results of Life Cycle Cost Analysis in feasibility studies
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F22%3A43921700" target="_blank" >RIV/62156489:43110/22:43921700 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.52514/sier.v1i2.30" target="_blank" >https://doi.org/10.52514/sier.v1i2.30</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.52514/sier.v1i2.30" target="_blank" >10.52514/sier.v1i2.30</a>
Alternative languages
Result language
angličtina
Original language name
Decision making models in energy projects: Impact of OPEX on results of Life Cycle Cost Analysis in feasibility studies
Original language description
Long-term strategic investment decisions are associated with high costs and risks. The decision-makers need a solid foundation to judge the best alternative for an investment project. In every sector of business, strategic decisions are taken. The natural gas industry in Germany has made considerable expenditures in gas infrastructure and will continue in future. A considerable part of the investment goes into compressor capacity. To avoid misallocation of funds the optimal alternative for compressors must be identified. Gas suppliers employ a decision-making methodology based on Life Cycle Cost (LCC) analysis in conjunction with the NPV technique to choose the best compressor option. In feasibility studies, several options are evaluated in this way. In this publication seven feasibility studies have been examined. The goal of these studies is to determine the optimum alternative for an investment project in the natural gas industry. The ranking is determined by the calculated NPVs which is based on relevant input data. The quality of input data and its forecasting have a significant impact on the results and can even change the ranking of the options. This publication examines the question of how reliable the results in the feasibility studies are. First, the model calculations are reproduced and the model verified. In the second step, the applied input data are replaced by real historical input data in the model in order to assess the effects on the calculation of the NPV. Sensitivity analysis is applied on relevant input data. Measures for risk mitigation are proposed.
Czech name
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Czech description
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Classification
Type
J<sub>ost</sub> - Miscellaneous article in a specialist periodical
CEP classification
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OECD FORD branch
50204 - Business and management
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
SCENTIA International Economic Review
ISSN
2748-0089
e-ISSN
2748-0089
Volume of the periodical
1
Issue of the periodical within the volume
2
Country of publishing house
DE - GERMANY
Number of pages
22
Pages from-to
263-284
UT code for WoS article
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EID of the result in the Scopus database
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