There are many ways to approach the economic analysis of an energy project, with life-cycle cost analysis (LCCA) being the ‘gold standard’. However, LCCA comes in many ‘flavors’, each of which has its own abbreviated moniker. Examples include NPV, NPW, ROI, IRR, LCOE, DCF, and variants on these themes. This presentation reviews this ‘alphabet soup’ in plain language, including examples of when each one is preferred. Some valuable links to publicly available spreadsheets for computing these financial metrics are also provided.
Session 4D: Business Models, Contracting & Financing
Thomas Phelps, Stantec Consultants
1800 West Park Drive, Suite 350
Westborough, MA 01581 USA
Phone +1 (508) 366-9339
Fax +1 (508) 366-0019
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