geothermal power plant projects in central america - Orkustofnun

CCF = EBITDA − ∆Working Capital − Taxes + Loans Drawdown + Equity Drawdown (52)Free Cash Flow to Equity (FCFE)Free Cash Flow to Equity is defined by Pinto et al. (2010) as the cash flow available to the company´sholders of common equity after all operating expenses, interest and principal payments have beenpaid, and the necessary investments in working and fixed capital have been made. Free Cash Flow andEquity calculations in this model can be summarized asFCFE = FCF + Equity Drawdown (53)6.3 Model inputsA wide range of resource temperatures and mass flow rates has been evaluated in three geothermalpower plant technologies. The power and cost results for each combination of temperature and massflow expected is used as input to the financial assessment model. This model uses fixed financial datainput as shown in Table 13 to evaluate each case. Input assumptions are described in the next sections.TABLE 13: Risk input variablesParametersEXPLORATION&CONFIRMATIONDRILLINGPOWER PLANTYear 1 2 3 4 5 6 7FinancialPlanning HorizonDiscount rate for projectDiscount rate for equity32 Years16%20%Equity Ratio30% 30% 30%Income TaxDividend PaidLoss Transfer Allowed30%30%NoDepreciation25% 5% 10%LoansLoans11 1Percentage of Loan Granted 50% 50% 50% 50% 40% 40% 20%First RepaymentInterestLoan LifeLoan FeesFirst Production Year9%102%First Production Year9%102%First Production Year9%102%Geothermal resourcesIn this study, resource temperatures between 160 and 340°C are evaluated for flash technologies, andresource temperatures between 100 and 180°C are evaluated for binary technologies. Bothtechnologies are evaluated for mass flow rates between 100 and 1,000 kg/s. Geothermal resources inCentral American countries are described in Chapter 3.Power plantThe power plant availability factor is assumed as 90%, over a one year period. The net power output iscalculated by subtracting all auxiliary loads to the total power output as described in Section 4.1.45