Volume 1: Renewable Energy Projects
This volume provides a structured framework for conducting economic analysis of renewable energy investments such as solar, wind, hydro, and geothermal projects. It outlines how to assess economic viability by identifying and valuing costs and benefits over the project lifecycle, including capital investment, operation and maintenance, environmental impacts, and energy output. The guidance emphasizes the use of shadow pricing, discounting, and sensitivity analysis to reflect true economic value beyond financial returns. It also highlights the importance of accounting for externalities such as emissions reductions and energy security. The volume supports decision-makers in comparing renewable energy options and prioritizing projects that deliver the highest socio-economic benefits.
Volume 2: Technical Notes
This volume complements the main guidelines by providing detailed methodological explanations and practical tools for economic analysis. It includes technical notes on key concepts such as discount rates, conversion factors, shadow pricing, and risk analysis. The document offers step-by-step approaches for estimating costs and benefits, handling uncertainty, and applying economic indicators like Net Present Value (NPV) and Economic Internal Rate of Return (EIRR). It also provides sector-specific parameters and examples to support consistent application across projects. Overall, the volume strengthens analytical rigor and ensures standardized, transparent evaluation of power sector investments.
