Abstract
The financial viability of a 30 MW wind farm proposed to be set-up in St. Ana in Philippines was examined. It was found that project is viable if established by a company with a low hurdle rate (8.68%) and good reach to avail low cost financing from domestic financial institutions, who may have such packages for low-risk customers. Most of the private sector investors however have higher discount rates due to high financing costs, and higher risk premiums charged by financers. The viability was an issue at risk adjusted discount rate of 13.2%, a typical rate for private sector investors in Philippines. Scenarios for variation in base parameters as well for a variety of financial packages, including revenues from CDM were run. Although CDM revenues improve attractiveness of the project, viability remains an issue. A financing package, that may have a grant component (as with the Danida package in the past), can help project make viable in this case. (au)
Painuly, J. P.
[1]
- Risoe National Lab., DTU, UNEP Risoe Centre, Roskilde (Denmark)
Citation Formats
Painuly, J. P.
Economic and financial feasibility of wind energy - Case study of Philippines.
Denmark: N. p.,
2007.
Web.
Painuly, J. P.
Economic and financial feasibility of wind energy - Case study of Philippines.
Denmark.
Painuly, J. P.
2007.
"Economic and financial feasibility of wind energy - Case study of Philippines."
Denmark.
@misc{etde_20903051,
title = {Economic and financial feasibility of wind energy - Case study of Philippines}
author = {Painuly, J. P.}
abstractNote = {The financial viability of a 30 MW wind farm proposed to be set-up in St. Ana in Philippines was examined. It was found that project is viable if established by a company with a low hurdle rate (8.68%) and good reach to avail low cost financing from domestic financial institutions, who may have such packages for low-risk customers. Most of the private sector investors however have higher discount rates due to high financing costs, and higher risk premiums charged by financers. The viability was an issue at risk adjusted discount rate of 13.2%, a typical rate for private sector investors in Philippines. Scenarios for variation in base parameters as well for a variety of financial packages, including revenues from CDM were run. Although CDM revenues improve attractiveness of the project, viability remains an issue. A financing package, that may have a grant component (as with the Danida package in the past), can help project make viable in this case. (au)}
place = {Denmark}
year = {2007}
month = {May}
}
title = {Economic and financial feasibility of wind energy - Case study of Philippines}
author = {Painuly, J. P.}
abstractNote = {The financial viability of a 30 MW wind farm proposed to be set-up in St. Ana in Philippines was examined. It was found that project is viable if established by a company with a low hurdle rate (8.68%) and good reach to avail low cost financing from domestic financial institutions, who may have such packages for low-risk customers. Most of the private sector investors however have higher discount rates due to high financing costs, and higher risk premiums charged by financers. The viability was an issue at risk adjusted discount rate of 13.2%, a typical rate for private sector investors in Philippines. Scenarios for variation in base parameters as well for a variety of financial packages, including revenues from CDM were run. Although CDM revenues improve attractiveness of the project, viability remains an issue. A financing package, that may have a grant component (as with the Danida package in the past), can help project make viable in this case. (au)}
place = {Denmark}
year = {2007}
month = {May}
}