The economic analysis of renewable energy sources project has been assessed considering Classical Methodologies of Investment Analysis (CMIA) in which a set of indicators are included, highlighting the Payback, Net Present Value and Internal Rate of Return as a crucial tools in decision making processes. The metrics used for financial and risk valuation mainly are grouped in cost benefit analysis. The CMIA (Classical Methodologies of Investment Analysis) as a main driver of the decision making process and the driver for solar wind and other alternative energy sources projects. The overall review of the REP - renewable energy projects was analyzed form perspectives of total costs, capacity factor and Levelized cost of energy LCOE. The analysis in this paper focuses on estimating the costs of renewables from the perspective of private investors, whether they are an international or domestic investors, or an individual or community looking to invest in small and medium scale renewable energy sources projects. The main objective of the research paper is to identify the optimal result for potential investment in Renewable energy project in The republic of North Macedonia, based on desktop research of publicly available data mainly provided by IRENA (International Renewable Energy Agency) and domestic institutions, and the indicative solar projects of 20MW which provides illustrative support for the financial valuation and risk perceptions.
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In-Text Citation: (Mahmudi, 2022)
To Cite this Article: Mahmudi, S. (2022). The Financial Metrics and Risk Management Tools in Supporting Renewable Energy Investment. International Journal of Academic Research in Business and Social Sciences, 12(8), 223– 233.
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