Evaluation of Biogas Plants by the Application of an Internal Rate of Return and Debt Service Coverage Approach | Science Publications

American Journal of Environmental Sciences

Giuseppe Bonazzi¹  Mattia Iotti¹ 

关键词: Biogas;    Biomass;    Positive Externalities;    Internal Rate of Return;    Net Present Value;    Debt Service Coverage Ratio;   

DOI  :  10.3844/ajessp.2015.35.45

学科分类：环境科学（综合）

来源: Science Publications

【 摘 要 】

Energyproduction using renewable energy has an effect on environmental sustainabilityand on public expenditure. In fact, this industry is heavily assisted by publicsupport from the European Union and the Italian State. Developing and applyinga method to evaluate the return on investment for companies operating in thefield of renewable energy allows them to quantify their efficient use of publicresources. In this research we develop an assessment method that combines therate of return on equity capital (IRRE) and financial viability (DSCR), inwhich IRRE > Ke and sub DSCR >1 for any given period of the investment.This method enables us to quantify both the equity capital return and financialsustainability. The method is applied to a case study of a company’s productionof biogas from livestock effluents located in the province of Reggio Emilia,Italy. The analysis shows that biogas investment guarantees financialsustainability, even in the case of financial liabilities, in the caseexamined. It also shows that IRRE is higher than average, with a return onequity assured both by market average (MRP) and government bonds in the longterm. The research could be further developed by quantifying the social welfaregenerated by public spending and private investment as equity capital, both interms of its activation of the economy and in terms of assessing theenvironmental effects that qualify as externalities.

【 授权许可】

Unknown