DEM has an extensive experience in the making of feasibility studies for a wide variety of energy projects. Our work enables our clients to make informed decisions about the projected success of a project from a technical, economic, legal and environmental perspective over the life cycle of an implemented energy project.
The development of a feasibility study is a process that defines exactly what a project is and what strategic issues need to be considered to assess its feasibility, or likelihood of succeeding. DEM ensures it is a management-oriented activity, so after a feasibility study the management makes a “go/no-go” decision, BUT we ensure it also to be used as a tool during the implementation of the energy project.
The goals of the Feasibility Study are to:
- Streamline and add value to the decision-making process based on the results of the planning and design efforts
- Recognize the role of the feasibility study in supporting resource requests for proposed energy investments
- Introduce the concept of time value of money by incorporating Net Present Value, Internal Rate of Return, and Breakeven Analysis and financial measures in the financial analysis
- Provide formats for clear and concise cost and benefit rationale to assist in the investment evaluation process
- Analyzing environmental impact and social consequences of the project, and
- Include training needs for operating personnel
A thorough feasibility analysis from DEM provides a lot of information necessary for the project’s business plan. Putting together a business plan is a significant investment of time and money; we want to make sure that there is no major stumbling block facing the project idea before making the investment. DEM provides detailed analysis of current trends, forecasting of future demand patterns, identification of policy options for the specific context, and recommendations for reforms, based on a thorough understanding of global best practice and supplemented by quantitative analysis that makes use of tested, multi-faceted databases and energy modelling tools.