The financial analysis tools presented in this chapter provide a broad, but simplistic, introduction to the types of analyses required to make informed investment decisions. Greater detail is available in a wide number of standard accounting and financial analysis texts. Updated information is essential, since tax laws are continually changing. Beyond this basic understanding, no major investment should be made without the review and approval of knowledgeable financial experts.

The financial analyst must be familiar with the specific financial situation of the host facility/investor and must understand all of the key financial implications of the project under consideration, inclusive of all obligations and risks. The type of contract to be used for the execution of the work is a key consideration factor, as is the financial condition of the contractors and any potential partners. Finally, it is important to note that most projects are partially, or even fully, funded with debt. Hence, the type of financing instrument contemplated for the project is of principal importance to the financial analyst. The following chapter presents information on the various types of contracts and financing arrangements most commonly used for the implementation of energy resource optimization projects.

Renewable Energy Eco Friendly

Renewable Energy Eco Friendly

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable.

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