The Component Costs and Revenues
Component Template
The Costs_and_Revenues.e-ctpl component template is located in the Component template library folder Others.
Integration Into a Scheme
The Component Costs_And_Revenues is used twice in the tutorial 06 in the variant CHP-Leasing (see following figure). The components are named Maintenance agreement and Leasing contract.
How the Component Works
You enter the single positions of Investment costs and promotion of investments, Debt capital, Operating costs and revenues, and costs of Water resources (fresh water, waste water) into the Input data and, if applicable, assign them to stakeholders.
The total amounts are displayed in the Output data.
Input Data
For the Time of payment of the Promotion of Investment (investment subsidy) enter the period after which the promotion of investments is paid in years, months, weeks, days, or hours. Enter “-1” if the promotion is paid directly with the first investment before the first year of operation.
Debt Capital
You can use the Debt capital form (see the following figure) to map financing by means of an redeemable loan. This includes capital in the economic evaluation that is borrowed from a credit institution or other financier at a certain Interest rate. This Debt capital reduces the equity required at the start of a project, but in return increases the running costs by the respective repayment amount and the interest payment. The repayment is spread evenly over the Loan term. The interest payments are calculated from the respective remaining debt in each period of the economic calculation (here: each year). Special payments or monthly payments are not reflected by the component. The Debt capital does not affect the simulation, but only the economic calculation. The Debt capital is not included in the calculation of EBITDA.
For more information, see the Known Bugs article.
The relationship between debt capital, interest payments, and redemption is illustrated in the following chart, which shows a debt capital amount of EUR 10,000 with a term of 10 periods and an interest rate of 5 %. It can be seen that the loan debt is reduced by the amount of repayment in each period. The amount of repayment is determined by dividing the debt capital by the number of periods. The interest payments become smaller and smaller because the residual debt on which the interest is to be paid also becomes smaller and smaller.
Repayment and Interest Payments
The following diagram shows the difference between financing an energy saving project with equity on the one hand and with a combination of equity and debt on the other. The blue line is the cumulative present value of an investment in the case of financing with EUR 20,000 equity and a saving of EUR 5,000 per period. The savings are discounted at an interest rate of 3 %. The red line represents the progression of the cumulative present value in the case of a proportionate debt financing of EUR 10,000 and a debt financing interest rate of 5 %. In this case (shown in red), the project starts with only EUR 10,000 in the red, and the cumulative present value increases more slowly due to the repayment and the interest.
A Comparison of Debt and Equity Financing
Operating Costs and Revenues
Water Resources
Enter the costs for water as an operating resource (Water and Sewage water) under the tab Water resources in the Input data (see the following figure).
The costs for water as an operating resource are included in the economic evaluation under Operating costs.
Under the Output data, are the Sums of all operating costs for resources and all operating revenues for resources as well as the Water costs and the Sewage costs. In the Variant comparison, the economic evaluation includes the costs and revenues for operating resources into the Operating costs and Operating revenues and outputs them under Variant → Costs and revenues. They appear as Costs respectively Revenues for plant operation in the Comparison of variants (selectable as diagram) and under Variant → Evaluation of economical efficiency → Variant. Water and sewage water costs are part of Miscellaneaous costs under Operating costs (w/o Energy) in the Excel export of the variant comparison.
