Integrated Green Energy Solutions, Volume 1

16An Overview on the Energy Economics Associated with the Energy Industry

Adhithiya Venkatachalapati Thulasiraman* and M.J.A. Prince

Department of Petroleum Engineering, AMET Deemed to be University, Kanathur, Tamil Nadu, India

Abstract

This investigation will exemplify the auxiliary associated with the time worth of cash (Time value of Money), divergent classifications of cost, economic paradigm and analysis associated with the energy industry. Initially, the time utility of funds is nothing but the financial power to buy commodities that have the potential to vary in a time’s revolving wheels. The prospective variation will be in the form of spending, reserving, acquiring and financing. To have an outlook of the commodity one should scrutinize the cost linked with that particular energy project. The total lifecycle of an industrial plant can be narrated with the use of the economic indicator. The economic specification comprises topics associated with return on costs, payback span, net present worth, discounted money flow and discounted money flow gain on an investment. This approach helps the energy industry to account for whether to opt for a project or to stop until any switch in the contemporary market transpires. Moreover, after cautious apprehension of the aforementioned conceptualization, it is important to employ analysis which includes incremental, sensitivity and replacement. Thus the overall perspective about the ins and outs of energy statistics can be studied ...