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Cost-Benefit Analysis Case Study: Nuclear Power Station in Tulear...

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Cost-Benefit Analysis Case Study: Nuclear Power Station in Tulear, Madagascar

Page 1 of 28

Benefit-Cost Analysis

Case Study

Nuclear Power Station In Tulear, Madagascar




Madagascar’s case3
Background information4
Estimation of Power Plant Capacity.5
Cost of the project6
Outflow forcast7
Total Inflow8
Payback Method.10
NPV Method.12
IRR Method13
Discounted Payback Method14
Sensitivity Analysys15
Scenario Analysy.17
Advantages and disadvantages of nuclear power generation19 Conclusion20


Energy has always been a must for national development. Nearly every aspect of development from reducing poverty and raising living standards to improving health care, industrial and agricultural productivity requires reliable access to modern energy resources. Countries may have different reasons for considering starting a nuclear power project to achieve their national energy needs, such as: lack of available indigenous energy resources, the desire to reduce dependence upon imported energy, the need to increase the diversity of energy resources and/or mitigation of carbon emission increases.

The primary objective of this project is to ascertain the feasibility of siting and commissioning a nuclear plant to serve the future energy needs of Madagascar. An immediate goal is to enable Madagascar’s government to offset the cost of increasingly expensive fossil fuel, thereby avoiding the progressive transfer of the hard currency to foreign shores. By adding abundant clean energy to the grid, a nuclear plant would additionally support the goal of clean air in Africa, given that most regions of high population within the state are currently judged to be non-attainment areas.

Madagascar’s case:

Due to the rising levels of pollution in Madagascar the government has come to a decision to cancel all the Fossil fuel...