Spemann PG-ROI Examples

 

 

 

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PG-ROI EXAMPLE 1
New Power Plant
Base Case Assumptions
 
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Knowing that the acceptable electricity price will be lower than 32 Eur/MWh, the user could try to find the exact value to meet 25% IRR.

 
Spemann PG-ROI offers a faster solution: the goal seek function.
In the sheet "Input“, select the cell with the value to be adapted by goal seek, in this example the cell with the 32 Eur/MWh electricity price. Click the button "goal seek“ and a window pops up. In this window, he sets the goal at 0.25, which is 25% (see red square).
 
 

Spemann PG-ROI finds the result quickly:

Given an electricity price of 31.066 Eur/MWh, the project would earn 25% Internal Rate of Return.