engleski

PROFITABILITY EVALUATION OF RENEWABLE ELECTRICITY PROJECTS

There were a lot of changes in energy field in Croatia during last year. Apart from market opening for all companies, 1st of July also brought new renewable energy legislation. Croatia chose to incentivise renewable electricity generation by feed-in tariff system, which is currently the most successful method in Europe. The purpose of this paper is to give an overview of key parameters that are important for overall renewable energy projects’ profitability. The paper explains the model used for calculation, and then calculates basic scenario for all technologies with given inputs. Then it goes down technology by technology and explains sensitivity of profit to changes in production, feed-in tariff, investment and operation and maintenance costs. Finally, it gives recommendations for investors on where to be careful while working with renewable electricity projects.

renewables; wind; biomass; small hydro; geothermal; profitability; feed-in tariff

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