Sensitivity Analysis

Sensitivity analysis is performed when conditions of uncertainty exist for one or more parameters. Objectives of a sensitivity analysis are to provide the decision-maker with information concerning the behaviour of the measure of economic effectiveness due to errors in estimating various values of the parameters and the potential for reversals in the preferences for economic investment alternatives.
In this project there are many parameters, which affect the performance of the economic investment. The following sensitivity analysis provides a good assessment of the production and selling price of hydrogen with a variation in electricity price.

Assuming the granting of a bank loan for the development of the hydrogen filling station a secondary sensitivity analysis indicates the degree of affection of the years of repayment and interest rate factors to the price of hydrogen. From figure 2 any different production cost of hydrogen for any number of the years for repayment of the loan can be estimated. It is also obvious that the production cost of hydrogen is significantly increased in relation to the reduction of the years of repayment. The 6 years of repayment mark (x-axis) features the critical point justifying the above assertion.

Figure 3 presents the affection of interest rate to the price of hydrogen. It is obvious that the price of hydrogen increases in relation to the enlarge of interest rate.