2.1.2.3 Simulations

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Last updated: Feb 03, 2023 by Support

Simulations are used to analyze the difference of some key variables on returns. There are three different kind of analysis: 

  • One-parameter study: Shows the impact of changing one variable (p-Value, Default lifetime or Asset Purchase Price) on IRRs, DSCR, LCOE, Adjusted Free Cashflow, Cashflow to Equity, Payout and Liquidity Gap
  • Two-parameter study: Shows the impact of changing two variables (p-Value, Default lifetime or Asset Purchase Price) on IRRs and Minimum DSCR
  • Fluctuations in Monthly Production (Monte Carlo): Monte Carlo Simulations can be used to investigate the effect of a variable monthly energy production on the most important performance indicators. The most important performance indicators are computed for a large number of possible production sequences. Each monthly production is assumed to deviate from the mean value by a random amount. The probability of the deviations is equally distributed in a user-defined interval (e.g. plus/minus 10% of the mean value, see 'Maximum deviation from mean' below). This implies that every value for the production in this interval is equally probable. The outputs of the Monte Carlo Simulation are IRRs, Maximum Liquidity Gap, Minimum DSCR, LCOE and Payback