Advertisement

Economic Analysis of Energy Investments

  • Subhes C. BhattacharyyaEmail author
Chapter

Abstract

This chapter introduces the traditional economic analysis of investment in energy projects and highlights the differences between the economic and financial analyses of projects. The chapter ends with a discussion on risk analysis for investment projects.

Keywords

Cost-benefit analysis Time value of money Net present value Uncertainty Sensitivity analysis 

References

  1. ADB. (1997). Guidelines for the economic analysis of projects. Manila: Asian Development Bank.Google Scholar
  2. ADB. (2002). Handbook for integrating risk analysis in the economic analysis of projects. Manila: Asian Development Bank.Google Scholar
  3. Belli, P., Anderson, J., Barnum, H., Dixon, J., & Tang, J. (1998). Handbook on economic analysis of investment operations, World Bank, Washington D.C. http://www.managingforimpact.org/sites/default/files/resource/world_bank_handbook_econ_analysis.pdf.
  4. Energy Information Administration, 2018, Levelised cost and levelised avoided cost of new generation resources in the Annual Energy Outlook 2018, US Energy Information Administration, Washington D.C. Retrieved June 10, 2018, from https://www.eia.gov/outlooks/aeo/pdf/electricity_generation.pdf.
  5. ESMAP. (2009). Study of equipment prices in the power sector, ESMP Technical paper 122/09, Energy Sector Management Assistance Program, The World Bank, Washington D.C. Retrieved June 10, 2018, from https://esmap.org/sites/default/files/esmap-files/TR122-09_GBL_Study_of_Equipment_Prices_in_the_Power_Sector.pdf.
  6. European Commission. (2013). Guide to cost-benefit analysis of investment projects, Economic Appraisal tool for Cohesion Policy 2014–2020, European Commission, Directorate General for Regional and Urban Policy, Brussels. Retrieved June 13, 2018, from http://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/cba_guide.pdf.
  7. IEA. (2004a). World Energy Investment Outlook, International Energy Agency, Paris. http://www.iea.org//Textbase/nppdf/free/2003/weio.pdf.
  8. IEA. (2014b). World Energy Investment Outlook, International Energy Agency, Paris. Retrieved June 10, 2018, from https://www.iea.org/publications/freepublications/publication/WEIO2014.pdf.
  9. IEA. (2016). World Energy Investment 2016, International Energy Agency, Paris. Retrieved June 10, 2018, from http://www.iea.org/publications/freepublications/publication/WEI2016.pdf.
  10. Lovei, L. (1992). An approach to the economic analysis of water supply projects, Working Paper WPS1005, World Bank, Washington D.C.Google Scholar
  11. Squire, L., & van der Tak, H. G. (1984). Economic Analysis of Projects. World Bank Research Publication.Google Scholar

Copyright information

© Springer-Verlag London Ltd., part of Springer Nature 2019

Authors and Affiliations

  1. 1.Institute of Energy and Sustainable DevelopmentDe Montfort UniversityLeicesterUK

Personalised recommendations