Financial Modelling for Geothermal Project


Unlike other energy resources, geothermal has a high associated risk (uncertainty). In terms of financial investment, developers have to run the numbers to identifying “What are my risk and potential reward? The goal here is to introduce financial tools to assess the feasibility of the geothermal project. The financial model is a powerful tool to solve this problem. This series of videos will cover the introduction to financial modeling, financial statement, time value of money, and financial parameters (e.g. NPV, IRR, PBP, LCOE). In the end, it also serves step-by-step video tutorials to help you understand better how financial model applies in the geothermal business. While you learn the fundamentals, you will also discover intriguing insight videos to satisfy your curiosity.


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The 1970s were one of the historic years in the history of the United States. OPEC proclaimed an oil embargo against the United States. This condition caused oil prices to rocketed four folds which leading to a recession in 1973-1975. In response to this condition, many research, academia, and policymakers were interested to explore energy studies which triggered the born of a branch of economics, namely “Energy Economics.” In this video, you will get to know how energy economics was discovered and how important energy economics is.