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Yup. Capital cost, operation and maintenance, and charging costs are all added up, financed over the operating period, and turned into a cost to meet an investm
by acidburnNSA 8y ago
Yup. Capital cost, operation and maintenance, and charging costs are all added up, financed over the operating period, and turned into a cost to meet an investment IRR of 12%. The table in page 11 of the pdf I linked above breaks it all down.
- zaroth 8y ago12% seems massively high for the risk level. This should be extremely low risk, right?
- lukeschlather 8y agoI think you're reading it as Annual Recurring Revenue rather than Internal Rate of Return. For IRR I think 12% is pretty normal, and depending on how good your project management is it could easily turn into 0%. But I'm not an accountant so I might be misunderstanding.
- xyzzyz 8y agoInvesting in a single facility with unproven technology, without other existing facilities with well known financials is a very risky investment.