Geothermal Power Plant Project Analysis, Greenhouse Gas Emissions Reduction, Economic Evaluation and Financial Profitability, Case Study of the Ranomafana Prospect

Geothermal

The purpose of this study is to conduct the financial and emission analysis of the Ranomafana site as a case study of geothermal power plant in Madagascar. The outputs of energy model using econometric technique are power capacity, electricity generation, annual GHG emission reduction, the Internal Rate Return (IRR), payback period, Net Present Value (NPV) and Profitability Index (Ip). The total initial investment for a 31.5 MW geothermal power plant was 107.9 million USD (at the end of 2022 costs). Economic analysis showed total annual savings and revenue of 11.978 million USD by avoiding fossil fuel electricity generation. About 71,465 tCO2 eq. could be avoided annually. The project is feasible due to positive NPV of 47.186 million USD, an IRR 13.3%, 10 years of payback period and an Ip more than 1.4. Based upon the IRR, positive NPV, short payback period and emission CO2 reduction, this study shows the geothermal energy has attractive investment economically and has eco-environmental benefits to be developed. This study can be useful for other geothermal resources analysis in Madagascar.

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