Filetype Excel XLS | Posted on 07 Jul 2022 | 3 years ago
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184x Filetype XLS File size 0.22 MB Source: energypedia.info
Sheet 1: Objectives
| INSABA Preassessment of Project Proposals | This tool is designed to help in the basic assessment of a project idea | |||||||||||||||||||||
| It is very simple as it does not consider interest, depreciation yet | ||||||||||||||||||||||
| Country: | RSA | Fill in the white fields, the rest will be computed | ||||||||||||||||||||
| Region: | Western Cape | |||||||||||||||||||||
| RE Technology: | Solar Drier | |||||||||||||||||||||
| Business Idea: | produce apple chips at higher value | |||||||||||||||||||||
| Proponent name, contact | Rob de Clerk, Somerset | In this tool, we determine the profile of the proponent entrepreneur | ||||||||||||||||||||
| Years of experience as owner of business | 5 | and the characteristics of the proposed business | ||||||||||||||||||||
| Number of employees w/contract | 4 | The figures in this examples are assumption based on interviews. | ||||||||||||||||||||
| Proponent uses bank account | (yes=5, No=0) | 5 | They need to verified during the market assessment Tool 2 | |||||||||||||||||||
| Experience with formal loan | (received=5, applied=3, no=0) | 5 | ||||||||||||||||||||
| Experience in cost calculations, business plans | (no=0, several=5) | 5 | ||||||||||||||||||||
| Practice in maintaining/operating equipment (RET) (none yet=0, regularly=5) | 3 | The influence of these data on the ROI can be seen in the sensitivity analysis | ||||||||||||||||||||
| Total | 27 | Optimization can be done e.g. With the goal-function like "what capital can I afford to still make 30% ROI?" | ||||||||||||||||||||
| Calculation of ROI | ||||||||||||||||||||||
| Apple Drier | Determination of parameters | Definitions | ||||||||||||||||||||
| Investment Capital | 9,957 | Estimated, then computed for ROI0,3 | Total cost of technology investment | |||||||||||||||||||
| Investment Lifespan | 5 | Estimated for solar dryer | Life of the technology - i.e. period before it must be replaced | |||||||||||||||||||
| Production | 520 | Daily 2 kg dried apple-chips sold 5 days per week 52 weeks/year= 520 kg p/a | Units produced per year | |||||||||||||||||||
| Price/unit | 19.50 | The current market price | Sales price per unit produced and sold | |||||||||||||||||||
| Revenue | 10,140 | Euro | Sales price multiplied by number of units sold | |||||||||||||||||||
| Variable cost/unit | 8.00 | Costs for fresh apples: 10 * 0,55 €/kg = 5,5 €/kg (sales price of 0,55 €/kg is relevant as this is the opportunity cost of the farmer);Costs for packaging: 0,5 €/kg;Costs for preparation: 10 kg fresh apples can be prepared in 15 minutes and hourly wage is 8 €: 2 €/kg | Cost per unit produced e.g. material, processing packaging | |||||||||||||||||||
| Cost of energy/unit | no other energy | costs of power, fuel added to variable cost | ||||||||||||||||||||
| Total fixed costs | 1,000 | Cost for display, handling | Annual indirect costs such as rent, telephones, salaries | |||||||||||||||||||
| Amortization/unit: | 3.83 | 1,991 | Amount needed per unit to cover investment in lifetime | |||||||||||||||||||
| Direct costs per unit: | 11.83 | 6,151 | Variable costs plus amortization plus cost of energy | |||||||||||||||||||
| Gross Margin/unit | 7.67 | Sales price per unit less the direct costs per unit | ||||||||||||||||||||
| Fixed costs/unit | 1.92 | Total fixed costs divided by the number of units produced | ||||||||||||||||||||
| Total costs | 13.75 | 7,151 | Direct costs plus fixed costs | |||||||||||||||||||
| Net Margin | 5.75 | 2,989 | Revenue less total costs | |||||||||||||||||||
| ROI | 30% | Return on Investment = net margin divided by capital investment | ||||||||||||||||||||
| Payback period years | 2.00 | capital investment divided by cash flow until intial expenses are compensated by the net margin | ||||||||||||||||||||
| Sensivity Analysis | ||||||||||||||||||||||
| ROI | Capital Investment | Investment Lifespan | Units/annum | Price/unit | Variable cost of sale/unit | Cost of energy/unit | total fixed costs | |||||||||||||||
| -20% | 42.52% | 25.02% | 18.00% | 9.65% | 38.37% | 30.02% | 32.02% | |||||||||||||||
| -10% | 35.57% | 27.79% | 24.01% | 19.83% | 34.19% | 30.02% | 31.02% | |||||||||||||||
| 0% | 30.02% | 30.02% | 30.02% | 30.02% | 30.02% | 30.02% | 30.02% | |||||||||||||||
| 10% | 25.47% | 31.83% | 36.02% | 40.20% | 25.84% | 30.02% | 29.01% | |||||||||||||||
| 20% | 21.68% | 33.35% | 42.03% | 50.38% | 21.66% | 30.02% | 28.01% | |||||||||||||||
| -20% | 41.66% | -16.66% | -40.02% | -67.86% | 27.84% | 0.00% | 6.69% | |||||||||||||||
| -10% | 18.51% | -7.40% | -20.01% | -33.93% | 13.92% | 0.00% | 3.35% | |||||||||||||||
| 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| 10% | -15.15% | 6.06% | 20.01% | 33.93% | -13.92% | 0.00% | -3.35% | |||||||||||||||
| 20% | -27.77% | 11.11% | 40.02% | 67.86% | -27.84% | 0.00% | -6.69% | |||||||||||||||
| INSABA Verification & Market-Assessment of Project Proposals | This tool is designed to verify the assumptions of the basic assessment of a project idea | |||||
| The economic comparison considers cost of energy, in case of e.g. Electric supply | ||||||
| Country: | RSA | Fill in the white fields, the rest will be computed | ||||
| Region: | Western Cape | |||||
| RE Technology: | Solar Drier | |||||
| Business Idea: | produce apple chips at higher value | |||||
| Market Context : describe | In this field, we determine the market context of the business idea | |||||
| Market Size & Potential | naturally dried fruit are icreasingly popular, domestic demand justifies the invetment, international market survey might justify futher expansion | State whether the market allows a scaleable, replicable use. Solar solutions often are modular! | ||||
| Market Need, Risk | market does not need dried fruit and may reject if contamination happens. For producer important for surplus harvest, which else will rot or go to juice. Risk is cheap import from Eastern countries, extended bad weather | who really needs the product and which assumptions, barriers, risks must be observed | ||||
| Competitor | DuPlessis with sun-drier is much cheaper, with electric stove still can produce cheaper | Describe direct, indirect competition | ||||
| Competing Technology | Electricity (subsidized) | What is current technology, which technology might take over when size becomes larger | ||||
| Appropriateness of RET | natural production and natural processing go together. "Sun-dried" gives better aroma, sells higher | Why would RET be preferred, by whom | ||||
| Market Segment | competition goes for bakery market, drier targets small package consumer market | Where is the strategic focus of competition, vs. Ours | ||||
| Main Differentiator | solar dries faster than open air, less risk, environmentally superior to electric | What is the striking difference in strategy | ||||
| Sustainable Production | incresed production might require chemical/radiative stabilization | Are there environmetal influences in enhanced production stages | ||||
| Calculation of Competitiveness | ||||||
| Apple Drier | Alternative | Description of Alternative | Definitions | |||
| Investment Capital | 650 | 500 | Dry apples in electric stove | Total cost of technology investment | ||
| Investment Lifespan | 5 | 5 | stove lifetime | Life of the technology - i.e. period before it must be replaced | ||
| Production | 520 | 520 | 20 kg fresh apples per day can also go in stove | Units produced per year | ||
| Price/unit | 19.50 | 19.50 | The current market price | Sales price per unit produced and sold | ||
| Revenue | 10,140 | 10,140 | Euro | Sales price multiplied by number of units sold | ||
| Variable cost/unit | 8.00 | 8.00 | see tool 1 | Cost per unit produced e.g. material, processing packaging | ||
| Cost of energy/unit | 2.20 | drying of 10 kg lasts 10 h, stove needs 1 kW, price of power is 0,22 €/kWh, therefore costs for power are 2,2 €/kg | costs of power, fuel added to variable cost | |||
| Total fixed costs | 1,000 | 1,000 | Cost for display, handling | Annual indirect costs such as rent, telephones, salaries | ||
| Amortization/unit: | 0.25 | 130 | 0.19 | 100 | Although the ROI for solar drier is good, the competition with electric stove can produce cheaper. If we are satisfied with the same margin, the solar drier may not cost above 6.215 Euro, if we want to achieve the same ROI, the goal-seek function tells us the drier may not cost above € 649. Production considerations are: The solar drier may be able to produce more than the stove, but it may fall back during bad weather. | Amount needed per unit to cover investment in lifetime |
| Direct costs per unit: | 8.25 | 4,290 | 10.39 | 5,404 | Variable costs plus amortization plus cost of energy | |
| Gross Margin/unit | 11.25 | 9.11 | Sales price per unit less the direct costs per unit | |||
| Fixed costs/unit | 1.92 | 1.92 | Total fixed costs divided by the number of units produced | |||
| Total costs | 10.17 | 5,290 | 12.32 | 6,404 | Direct costs plus fixed costs | |
| Net Margin | 9.33 | 4,850 | 7.18 | 3,736 | Revenue less total costs | |
| ROI | 746% | 747% | Return on Investment = net margin divided by capital investment | |||
| Payback period years | 0.13 | 0.13 | capital investment divided by cash flow until intial expenses are compensated by the net margin | |||
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