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A feasibility study is used to refer to detailed determination of the feasibility of AES. It is intended to show whether the AES is technically, economically and organisattionally feasible. It also provides information on the environmental impact of the AES.
Successful projects involve far more than finding the cheapest available technology.
There are several reasons why an important renewable energy project, would require a full feasibility study.
Positioning the Project for Financing
Project funding will involve a detailed and vigorous due diligence evaluation by any potential funding source.
If a project cannot withstand the financing scrutiny, it will not become a reality because it will not be funded. The NuEnergy Feasibility Study will identify the issues relative to project funding and provide an outline of issues to consider during project development.
Defining The Project Scope
Renewable energy projects have considerations far beyond determining whether to deploy solar, wind, waste-to-energy, water decontamination, hydroelectric technology or other solutions.
You have to identify the local community requirements, consider all available resources, develop a comprehensive solution, evaluate the impact of any possible solution on the local community and provide a vendor neutral technology recommendations. Incurring this expense at the beginning can prevent costly redesign efforts later.
All infrastructure projects will require a significant capital investment and the key to success is getting the most value for that investment. Sometimes a hybrid solution brings benefits far beyond a single technology solution. Technology vendors promote their technology, whether or not it is the most appropriate technology for the situation. A solar vendor does not often consider wind, nor does a wind vendor consider solar.
Identifying and integrating complementary technologies can provide a community with a superior solution at marginal additional cost, providing more value to the community and structuring a project so that it is more likely to survive the financing due diligence evaluation.
Energy Independence and Security
Producing energy is of no value if it cannot be delivered to the community in a reliable manner. The future is in Smart Grids that are efficient, flexible, reliable and decentralized and which will provide a community with the power it needs from local resources.
According to the World Bank, the current recession may limit the funds available to finance energy infrastructure projects. In evaluating a project, they are seeking projects that help countries “improve access to, and reliability of, energy while helping facilitate the shift to a more environmentally sustainable energy development path.” The NuEnergy feasibility study will assist in developing the sort of “energy development path” that funding sources want to see to support a project.
While NuEnergy cannot guarantee financing, nor are we affiliated with the World Bank, the key point is that having a good idea at a low price is not necessarily enough. Profitable projects may find their own financing; marginal, but necessary projects need more. The NuEnergy feasibility study is intended to prepare your package for success in seeking funding.
Detailed renewable energy feasibility study
During the PEA project a feasibility study was worked out for a district heating system in Groß Warnow in the RCG Prignitz. The full report can be seen here.
A Handbook for performing feasibility studies of alternative energy systems can be downloaded here.