Project appraisal methodology sensitivity analysis
The division uses the project appraisal methodology to make decisions about how to allocate federal funds to candidate R and D projects. The division is responsible for over 30 research and development (R and D) projects. Due to the large number of projects and the great variety in projects, funding decisions would be difficult without a methodology. The methodology scores R and D projects according to the following eight criteria: energy savings, technical risk, cost, commercial potential, uniqueness, resource availability, environmental impact, and legal, social, and institutional effects. Projects with high scores are deemed more favorable for funding than projects with low scores. Two issues have been raised concerning the methodology. The first issue relates to the question: how accurate must project data be in order to make a reasonably sound assessment of a project's merit relative to other candidate projects. An understanding of the sensitivity of scores to data inputs would enable the division to set priorities for refining and validating data inputs. The second issue pertains to the question: which elements of the methodology should be altered to reflect changes in the division's mission. The division's mission has been changing rapidly over the last two years as a result of reorganization and evolution of energy policy. Further changes are anticipated in the future. Thus, it was determined that a sensitivity analysis should also be conducted on the energy savings weighting factors.
- Research Organization:
- Sante Fe Corp., Alexandria, VA (USA)
- DOE Contract Number:
- AC03-77ET15078
- OSTI ID:
- 6213053
- Report Number(s):
- DOE/ET/15078-T7
- Country of Publication:
- United States
- Language:
- English
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