Cost and Benefit Relation of Biogas Plants - Revision history

Wiki Gardener at 09:35, 17 October 2014

2014-10-17T09:35:54Z

Fungai Cecilia Sandamu at 13:56, 23 May 2014

2014-05-23T13:56:41Z

Frank Helbig: Replaced content with " =
= Category:Biogas Category:Financing_and_Funding Category:Financing_Biogas"

2014-01-26T16:38:29Z

Replaced content with " = <br/> = Category:Biogas Category:Financing_and_Funding Category:Financing_Biogas"

Fungai Cecilia Sandamu at 18:28, 14 May 2013

2013-05-14T18:28:33Z

Fungai Cecilia Sandamu at 12:45, 19 April 2013

2013-04-19T12:45:44Z

Fungai Cecilia Sandamu at 12:31, 19 April 2013

2013-04-19T12:31:38Z

Katharina Wiedemann at 11:34, 27 April 2012

2012-04-27T11:34:30Z

Katharina Wiedemann at 09:42, 27 April 2012

2012-04-27T09:42:13Z

Katharina Wiedemann at 09:41, 27 April 2012

2012-04-27T09:41:34Z

Katharina Wiedemann at 09:41, 27 April 2012

2012-04-27T09:41:02Z

@@ Line 1: / Line 1: @@
 = Overview =
@@ Line 7: / Line 8: @@
 = Methods =
-As soon as the '''cost and benefit of a [[Parts of a Biogas Plant|biogas plant]]''' in plan can be expected, collected and analysed, and as soon as a rate of interest for the calculation is determined it can be worked out with the assistance of a dynamic investment calculation if the plant is economical or not. Where there are several alternatives relative advantage can be ascertained.
+As soon as the '''cost and benefit of a [[Parts of a Biogas Plant|biogas plant]]''' in plan can be expected, collected and analysed, and as soon as a rate of interest for the calculation is determined it can be worked out with the assistance of a dynamic investment calculation if the plant is economical or not. Where there are several alternatives relative advantage can be ascertained<ref name="AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML">AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML</ref>.<br/>
 <br/>
-<u>There are three generally accepted methods for this:</u>
+<u>There are three generally accepted methods for this<ref name="AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML">AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML</ref>:</u><br/>
 *the capital value or discounting method
 *the internal rate of interest method
-*[[Annuity method|the annuity method]]
+*[[Annuity_Method|the annuity method]]<br/>
 <br/>
-These methods are principally equivalent. The selection is effected according to the purpose and plausibility, e.g. distinctness of each advantage key. In practice the discounting method is used most frequently. According to this method the cost and benefit of different periods of time are concentrated onto one point in time, normally the current value or cash value, discounted and so made comparable. When comparing alternatives with different economic lifetimes and investment costs the annuity method is especially suitable. For the calculation of user fees the annuity method should be used. According to this method the non-recurring and aperiodical investment costs are converted into equal constant annual amounts for the economic lifetime of the plant and related to the quantity of gas distributed. This occurs by means of a capital return factor which states the annual amount of depreciation an interest which has to be used at the end of each year during <var>n</var> years to regain the original capital with interest and compound interest.
+These methods are principally equivalent. The selection is effected according to the purpose and plausibility, e.g. distinctness of each advantage key. In practice the discounting method is used most frequently. According to this method the cost and benefit of different periods of time are concentrated onto one point in time, normally the current value or cash value, discounted and so made comparable. When comparing alternatives with different economic lifetimes and investment costs the annuity method is especially suitable. For the calculation of user fees the annuity method should be used. According to this method the non-recurring and aperiodical investment costs are converted into equal constant annual amounts for the economic lifetime of the plant and related to the quantity of gas distributed. This occurs by means of a capital return factor which states the annual amount of depreciation an interest which has to be used at the end of each year during <var>n</var> years to regain the original capital with interest and compound interest<ref name="AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML">AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML</ref>.
 <br/>
@@ Line 24: / Line 25: @@
 = Difficulties =
-In order to avoid misinterpretations the basic weakness of efficiency calculations from a micro as well as macro-economic point of view have to be pointed out. For reasons of operational ability these calculations extensively comprise monetary effects. This means that cost and benefit are only determined with a view to monetary aims. There are, then, 'intangible' aims and thus, 'intangible' cost and benefit for which a final valuation lies within the judgement of the decisionmaker.
+In order to avoid misinterpretations the basic weakness of efficiency calculations from a micro as well as macro-economic point of view have to be pointed out. For reasons of operational ability these calculations extensively comprise monetary effects. This means that cost and benefit are only determined with a view to monetary aims. There are, then, 'intangible' aims and thus, 'intangible' cost and benefit for which a final valuation lies within the judgement of the decisionmaker<ref name="AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML">AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML</ref>.
-Further difficulties arise with the uncertainties combined with the determining of most of the basic influencing factors involved in the economic and financial profitability of biogas plants. To pinpoint the importance of possible fluctuations of any exceptions or data for the profitability calculated, sensitivity analyses should be carried out.
+Further difficulties arise with the uncertainties combined with the determining of most of the basic influencing factors involved in the economic and financial profitability of biogas plants. To pinpoint the importance of possible fluctuations of any exceptions or data for the profitability calculated, sensitivity analyses should be carried out<ref name="AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML">AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML</ref>.
 <br/>
-<u>The extent of any effects on the result of the profitability calculation should be investigated especially for the following factors:</u>
+<u>The extent of any effects on the result of the profitability calculation should be investigated especially for the following factors<ref name="AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML">AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML</ref>:</u>
 *available quantity of substrates
 *expected gas production, especially the reduction for colder seasons
@@ Line 47: / Line 48: @@
 = Observation of the Development<br/> =
-It would be practical to observe the development of the most important determinants in the profitability over a period of time and compare them now and again with the assumptions made at the planning stage. A year after being taken into operation the plant should be subjected to a renewed assessment concerning the economic advantage and the financial productivity.
+It would be practical to observe the development of the most important determinants in the profitability over a period of time and compare them now and again with the assumptions made at the planning stage. A year after being taken into operation the plant should be subjected to a renewed assessment concerning the economic advantage and the financial productivity<ref name="AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML">AT Information - Biogas: http://www.fastonline.org/CD3WD_40/BIOGSHTM/EN/COSTBEN/COSTBENREL.HTML</ref>.
 <br/>
@@ Line 53: / Line 54: @@
 = Further Information<br/> =
-H. Finck, G. Oelert: A guide to the financial Evaluation of Investment projects in energy supply. GTZ No/63.
+*[[:File:EN_A_guide_to_the_financial_evaluation_of_investment_projects_in_energy_supply_GIZ-Fink,_Oehlert.pdf|H. Finck, G. Oelert: A guide to the financial Evaluation of Investment projects in energy supply. GTZ No 163.]]<br/>
 [[Category:Biogas]]

@@ Line 1: / Line 1: @@
-= <br/> =
+This article describes the methods that can be used to calculate the cost and benefit relation of a biogas plant.
 [[Category:Biogas]]
 [[Category:Financing_and_Funding]]
 [[Category:Financing_Biogas]]

← Older revision		Revision as of 16:38, 26 January 2014
Line 1:		Line 1:

−	= ~~Overview =~~	+	= <br/> =
−
−	~~This article describes the methods that can be used to calculate the cost and benefit relation of a biogas plant.~~
−
−	~~<br/>~~
−
−	~~= Methods =~~
−
−	As soon as the '''cost and benefit of a [[Parts of a Biogas Plant\|biogas plant]]''' in plan can be expected, collected and analysed, and as soon as a rate of interest for the calculation is determined it can be worked out with the assistance of a dynamic investment calculation if the plant is economical or not. Where there are several alternatives relative advantage can be ascertained.
−
−	~~<br/>~~
−
−	~~<u>There are three generally accepted methods for this:</u>~~
−	*the capital value or discounting method
−	*the internal rate of interest method
−	*[[Annuity method\|the annuity method]]
−
−	~~<br/>~~
−
−	These methods are principally equivalent. The selection is effected according to the purpose and plausibility, e.g. distinctness of each advantage key. In practice the discounting method is used most frequently. According to this method the cost and benefit of different periods of time are concentrated onto one point in time, normally the current value or cash value, discounted and so made comparable. When comparing alternatives with different economic lifetimes and investment costs the annuity method is especially suitable. For the calculation of user fees the annuity method should be used. According to this method the non-recurring and aperiodical investment costs are converted into equal constant annual amounts for the economic lifetime of the plant and related to the quantity of gas distributed. This occurs by means of a capital return factor which states the annual amount of depreciation an interest which has to be used at the end of each year during <var>n</var> years to regain the original capital with interest and compound interest.
−
−	~~<br/>~~
−
−	~~= Difficulties =~~
−
−	In order to avoid misinterpretations the basic weakness of efficiency calculations from a micro as well as macro-economic point of view have to be pointed out. For reasons of operational ability these calculations extensively comprise monetary effects. This means that cost and benefit are only determined with a view to monetary aims. There are, then, 'intangible' aims and thus, 'intangible' cost and benefit for which a final valuation lies within the judgement of the decisionmaker.
−
−	Further difficulties arise with the uncertainties combined with the determining of most of the basic influencing factors involved in the economic and financial profitability of biogas plants. To pinpoint the importance of possible fluctuations of any exceptions or data for the profitability calculated, sensitivity analyses should be carried out.
−
−	~~<br/>~~
−
−	~~<u>The extent of any effects on the result of the profitability calculation should be investigated especially for the following factors:</u>~~
−	*available quantity of substrates
−	*expected gas production, especially the reduction for colder seasons
−	*the proportion of effectively utilizable gas production on total production
−	*type and quantity of replaceable fuels
−	*price of the fuels replaced (also in time-lapse)
−	*type and quantity of the replaced mineral fertilizer
−	*price of the mineral fertilizer (also in time-lapse)
−	*extent of the increase in agricultural production as a result of biodung
−	*economic lifetime of the plant, respectively its most important components
−	*rate of interest for capital invested
−	*amount and development of the running costs
−
−	~~<br/>~~
−
−	~~= Observation of the Development<br/> =~~
−
−	It would be practical to observe the development of the most important determinants in the profitability over a period of time and compare them now and again with the assumptions made at the planning stage. A year after being taken into operation the plant should be subjected to a renewed assessment concerning the economic advantage and the financial productivity.
−
−	<br/>
−
−	= ~~Further Information<br/> =~~
−
−	~~H. Finck, G. Oelert: A guide to the financial Evaluation of Investment projects in energy supply. GTZ No/63.~~

		+	[[Category:Biogas]]
		+	[[Category:Financing_and_Funding]]
	[[Category:Financing_Biogas]]		[[Category:Financing_Biogas]]
−	~~[[Category:Financing_and_Funding]]~~
−	~~[[Category:Biogas]]~~

@@ Line 1: / Line 1: @@
 = Methods =
@@ Line 10: / Line 16: @@
 *the internal rate of interest method
 *[[Annuity method|the annuity method]]
-<div style="text-align: center;"><center>
-{| style="width: 1px; height: 3px" class="FCK__ShowTableBorders" cellpadding="0" cellspacing="0"
+<br/>
-|-
 These methods are principally equivalent. The selection is effected according to the purpose and plausibility, e.g. distinctness of each advantage key. In practice the discounting method is used most frequently. According to this method the cost and benefit of different periods of time are concentrated onto one point in time, normally the current value or cash value, discounted and so made comparable. When comparing alternatives with different economic lifetimes and investment costs the annuity method is especially suitable. For the calculation of user fees the annuity method should be used. According to this method the non-recurring and aperiodical investment costs are converted into equal constant annual amounts for the economic lifetime of the plant and related to the quantity of gas distributed. This occurs by means of a capital return factor which states the annual amount of depreciation an interest which has to be used at the end of each year during <var>n</var> years to regain the original capital with interest and compound interest.
 = Difficulties =
@@ Line 23: / Line 28: @@
 Further difficulties arise with the uncertainties combined with the determining of most of the basic influencing factors involved in the economic and financial profitability of biogas plants. To pinpoint the importance of possible fluctuations of any exceptions or data for the profitability calculated, sensitivity analyses should be carried out.
 <u>The extent of any effects on the result of the profitability calculation should be investigated especially for the following factors:</u>
@@ Line 45: / Line 52: @@
 <br/>
-= Further Reading<br/> =
+= Further Information<br/> =
 H. Finck, G. Oelert: A guide to the financial Evaluation of Investment projects in energy supply. GTZ No/63.
 [[Category:Biogas]]

@@ Line 49: / Line 49: @@
 H. Finck, G. Oelert: A guide to the financial Evaluation of Investment projects in energy supply. GTZ No/63.
 [[Category:Financing_and_Funding]]
-[[Category:Biogas]]
+[[Category:Financing Biogas]]

← Older revision		Revision as of 11:34, 27 April 2012
Line 46:		Line 46:


−	= Further Reading:<br/> =	+	= Further Reading<br/> =

	H. Finck, G. Oelert: A guide to the financial Evaluation of Investment projects in energy supply. GTZ No/63.		H. Finck, G. Oelert: A guide to the financial Evaluation of Investment projects in energy supply. GTZ No/63.

Cost and Benefit Relation of Biogas Plants - Revision history

Wiki Gardener at 09:35, 17 October 2014

Fungai Cecilia Sandamu at 13:56, 23 May 2014

Frank Helbig: Replaced content with " = = Category:Biogas Category:Financing_and_Funding Category:Financing_Biogas"

Fungai Cecilia Sandamu at 18:28, 14 May 2013

Fungai Cecilia Sandamu at 12:45, 19 April 2013

Fungai Cecilia Sandamu at 12:31, 19 April 2013

Katharina Wiedemann at 11:34, 27 April 2012

Katharina Wiedemann at 09:42, 27 April 2012

Katharina Wiedemann at 09:41, 27 April 2012

Katharina Wiedemann at 09:41, 27 April 2012

Frank Helbig: Replaced content with " =
= Category:Biogas Category:Financing_and_Funding Category:Financing_Biogas"