Decision making models in energy projects

Long-term strategic investment decisions are associated with high costs and risks. The decision-makers need a solid foundation to judge the best alternative for an project. In every sector of business, taken. natural gas industry in Germany has made considerable expenditures infrastructure will continue future. A part goes into compressor capacity. To avoid misallocation funds optimal compressors must be identified. Gas suppliers employ decision-making methodology based on Life Cycle Cost (LCC) analysis conjunction NPV technique choose option. feasibility studies, several options evaluated this way. publication seven studies have been examined. goal these is determine optimum project industry. ranking determined by calculated NPVs which relevant input data. quality data its forecasting significant impact results can even change options. This examines question how reliable are. First, model calculations reproduced verified. second step, applied replaced real historical order assess effects calculation NPV. Sensitivity Measures risk mitigation proposed.